Refinance Scheme by Bangladesh Bank under the Stimulus Package due to COVID-19 outbreak

Types of Refinance Refinance Scheme to facilitate for Large industry and service Sector’s
Working capital loan / investment
Sources of Fund Bangladesh Bank’s Own Fund
Eligible for Refinance Large Industry and Service Sector infected by COVID-19 (except CMSME)
Refinance Limit Tk. 15,000 Crore (50% of provided loan/disbursed amount under the
Stimulus package of COVID-19)
Purpose Working capital finance/ investment
Tenor 03-year (Revolving Refinance Scheme)
Interest rate for 4% p.a. (quarterly interest payment)
refinance amount and
payment system
Applying date for 10-day of the following month
refinance
Fund Management Off-Site Supervision Department, Bangladesh Bank
Authority
Submission of report to 10-day of the following month on monthly basis according to Annexure-
BB (Dept. of Off-site GA, BRPD Circular no. 10
Supervision)
BRPD Circular BRPD Circular-10 (Dated: April 23, 2020)
Remarks: If the refinanced fund under the scheme used to other sector which are not mention in BRPD
Circular No. 08/2020 then the Bangladesh Bank will realized 4.00% p. a. interest rate + additional 2%
on the provided fund of respective Bank/FI.
The project is aligned with the stimulus package for CMSMEs announced by the GoB
amounting to BDT 200 billion (SMESPD Circular-01 dated 13 April, 2020) and Bangladesh Bank’s
refinance scheme amounting to BDT100 billion(SMESPD Circular-02 dated 26 April, 2020) and
also
aligned with the subsequent changes as made in different circular letters

The said refinance facility from AIIB amounting USD300 million (BDT. 2,520 Crore) is
available to provide liquidity support to Banks and FIs parallel to BB’s own refinance facility
to CMSME stimulus package being implemented by Banks and FIs. Under this facility, the
Participating Financial Institutions (referred to as PFIs) would be able to get additional
refinance up to 50% of their lending under CMSME Stimulus Package, which would raise the
facility up to 100% under the combination of AIIB facility and BB’s own refinance scheme.
Stimulus Package:

Stimulus Package for the affected large manufacturing and service sector (except CMSME) due to
Covid-19

Purpose Stimulus package Covid-19

Amount of Fund BDT. 30,000 Crore
Tenor 03-year (For any single customer, Government will provide subsidy
only for 01-year)
Rate of Interest 09% p.a. (4.50% p.a. will be subsidized by Government)
Amount of providing loan in I. Companies those enjoy working capital loan at present:
Manufacturing and Service - 30% of existing working capital loan
sector II. Companies those don’t enjoy working capital loan at present
- Amount will be fixed based on the existing rules of the Loan
providing Financial Institution (Maximum 30%)
Apply for facilities According to Annexure KA-1 and Annexure KA-2 to the Banking Rules
and Regulation Department, Bangladesh Bank
Submission of Report 10-day of the following month according to Annexure-GA
BRPD Circular BRPD Circular-08
Dated: April 12, 2020

Eligibility Criteria:

 No defaulter will get the facilities under this circular

 If any loan has been rescheduled more than 03 times, then it will be excluded from this facilities.
 Those customers will apply for this facilities, their rating should be minimum Marginal based on
the previous year audited financial statement.