Bangladesh Bank announces Tk60,000 crore stimulus package to revive shuttered factories

Bangladesh Bank has announced a Tk60,000-crore stimulus package to revive closed and struggling factories, aiming to boost production, exports, private sector growth and employment amid ongoing economic challenges.

Of the total package, Tk41,000 crore will be allocated for refinancing facilities to help reopen factories, while the central bank will contribute Tk19,000 crore from its own funds, Governor Md Mostaqur Rahman said during a briefing at the central bank headquarters on Saturday.

Under the scheme, large industries will be able to access loans at a 7 percent interest rate at the customer level, while smaller borrowers may face slightly higher rates. According to a presentation shared at the briefing, the package is expected to create around 2.5 million jobs.

The programme will provide support to large industries, cottage, micro, small and medium enterprises (CMSMEs), as well as the agriculture sector.

Officials of Bangladesh Bank said the facility is primarily intended for businesses hit hard by post-Covid disruptions, the Russia-Ukraine war and volatility in the foreign exchange market. Priority will be given to firms with confirmed orders and strong market demand to ensure effective utilisation of the funds.

Officials have already identified more than 1,200 closed or partially operational industrial units across the country.