BB rolls out Tk 20,000cr package to revive shut, struggling mega industries

In a major move to inject life into the country’s sluggish industrial sector, Bangladesh Bank (BB) yesterday launched a massive Tk 20,000crore revolving pre-finance scheme aimed at reviving closed and underutilized large-scale enterprises.

The initiative, titled the “Closed Industry and Service Sector Facilitation Pre-finance Scheme,” is designed to provide crucial working capital to eligible industries, helping them restore production capacity, secure supply chains, and protect thousands of jobs.

Under the freshly issued guidelines published on Tuesday, the central bank will provide funds to participating financial institutions (PFIs) at a concessional interest rate of 4 percent, while the maximum lending rate for end-borrowers has been capped at 7 percent.

A single borrower or corporate group can avail of up to Tk 200 crore as a one-year continuous loan, renewable based on satisfactory performance.

The emergency facility specifically targets industries crippled by operational disruptions.

The funds can be utilized for core operational expenses, including the procurement of raw materials, utility bill payments, and executing pending export orders.

Furthermore, the loan allows companies to clear up to four months of workers’ salaries and wages.

However, in a bid to ensure transparency, the central bank has strictly prohibited cash disbursements; all payrolls must be routed through formal bank accounts or Mobile Financial Services (MFS).

Export-oriented industries and deemed exporters will receive top priority under the scheme.

To prevent the fund diversion and aggressive lending practices that have plagued past stimulus packages, the central bank has embedded stringent governance and compliance measures into the policy.

Crucially, the financing cannot be used to adjust or repay any existing bank loans.

Furthermore, defaulted borrowers are strictly barred from the facility. Eligible applicants must secure certifications from their respective trade bodies, such as the FBCCI, BGMEA, or BKMEA.

To maintain strict oversight, borrowers must access the facility through the exact same bank that financed their original project, with all financial transactions strictly routed through designated escrow or revenue accounts.

The guidelines further require participating institutions to ensure borrowers are not involved in money laundering, fraud, forgery or fund diversion.

Banks may also appoint representatives or specialists to the boards of recipient institutions to help ensure proper utilization of funds.

Bangladesh Bank said the financing cannot be used to adjust or repay existing loans or investments, ensuring that the facility remains focused on restoring productive economic activity.

The scheme will be administered under BRPD-1 Circular No. 13 and BRPD-3 Circular Letter No. 01, with participating financial institutions required to sign a participation agreement with the Banking Regulation and Policy Department (BRPD)-3 and submit quarterly implementation reports.

According to BB’s Banking Regulation and Policy Department (BRPD), commercial banks have also been empowered to appoint independent representatives or industry specialists to the boards of the recipient companies to oversee proper fund utilization.

Central bank officials express strong optimism that bringing these idle industrial assets back into production will accelerate export growth, preserve employment, and drive a resilient economic recovery.