BB announces Tk60,000cr stimulus to reopen closed factories

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

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

Under the scheme, large industries will receive loans at a 7% interest rate at the customer level, while smaller borrowers may face slightly higher rates. The package is expected to generate around 2.5 million jobs, according to a presentation shared at the briefing.

Large industries, cottage, micro, small and medium enterprises (CMSMEs), and the agriculture sector will receive support under the programme.

Bangladesh Bank officials said the facility will mainly target businesses that became distressed due to post-Covid disruptions, the Russia-Ukraine war, and foreign exchange market volatility. Priority will be given to firms with confirmed orders and strong market demand to ensure effective use of the funds.

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