Bangladesh Central Bank Unveils $5 Billion Growth Fund to Revive Factories and Small Businesses
Updated
Updated · Bloomberg · May 23
Bangladesh Central Bank Unveils $5 Billion Growth Fund to Revive Factories and Small Businesses
2 articles · Updated · Bloomberg · May 23
600 billion taka ($5 billion) will be deployed by Bangladesh’s central bank to spur growth, reopen shuttered factories and support small businesses, Governor Mostaqur Rahman said Saturday.
410 billion taka of the package will be raised from banks with excess liquidity at a 10% interest rate, with the remaining 190 billion taka coming from Bangladesh Bank’s own reserves.
The funding mix shows the central bank is leaning on both idle banking-system cash and its balance sheet to channel credit into weaker parts of the economy.
With bad loans crippling banks, will this $5 billion fund save the economy or deepen the crisis?
As the IMF withholds loans over failed reforms, is this new $5 billion fund a defiant rescue plan?