BB approves Tk 2.0b re-financing scheme for shipbuilders

FE Report

The central bank is going to launch a re-financing scheme worth Tk 2.0 billion for the country's growing shipbuilding industry, officials said Saturday.

A proposal to this effect was approved at a meeting of the board of directors of the Bangladesh Bank (BB), held at its Sylhet office Saturday with BB Governor Atiur Rahman in the chair.

"The board of directors has given approval to launch such a re-financing scheme to facilitate the export-oriented shipbuilding industry," a BB senior official told the FE on phone from Sylhet after the meeting.

The central bank will issue a circular in this connection shortly, the BB official said adding that the shipbuilders would be able to receive loans from the commercial banks at 10 per cent interest under the scheme.

On the other hand, the local commercial banks will be able to charge a fee of not more than 1.5 per cent annually for issuing any guarantee against receipt of fund from a foreign ship importer.

On January 18, the central bank issued a circular, asking the chief executives and managing directors of all commercial banks to follow the directive properly.

"We've taken the initiative to promote the country's growing shipbuilding industry," another BB official told the FE earlier, adding that the shipbuilders would benefit from the latest measure.

A master circular on schedule of charges, issued by the BB on December 22, applies to opening of letters of credit (LCs) in the industry.

The charges for side LCs, deferred LCs, 100 per cent cash margin LCs and back-to-back LCs will be 0.40 per cent, 0.50 per cent, 0.25 per cent and 0.40 per cent respectively on a quarterly basis, according to the circular.

The banks will not charge more than 2.0 per cent as commission annually for opening LCs, the BB said.