Black_cats
ELITE MEMBER
- Joined
- Dec 31, 2010
- Messages
- 10,031
- Reaction score
- -5
PM Hasina unveils Tk 72,750 crore (8.53 Billion USD) package to overcome Covid-19 impact
https://www.bssnews.net/?p=371318
DHAKA, April 5, 2020 (BSS) – Prime Minister Sheikh Hasina today unveiled
the government work plan to overcome the possible COVID-19 impact on the
country’s economy, declaring an allocation of Taka 72,750 crore under a set
of stimulus packages.
“Earlier I declared a Tk 5,000 crore (emergency) incentive package for
paying salaries and allowances of export-oriented industries workers and
employees and today I am announcing four fresh financial stimulus packages of
Tk 67,750 crore,” she said.
In a nationwide televised address from her official Ganabhaban residence
this morning, the premier said with the fresh allocations, the total amount
of financial assistance would stand at Tk 72,750 crore, which is nearly 2.52
percent of GDP.
“I hope our economy will rebound and we could reach near the desired
economic growth, if the stimulus packages, the previous and the fresh ones,
could be quickly implemented,” she said.
The premier said the government simultaneously took four programmes under
the work plan to be implemented in phases categorized as “immediate, short
and long”.
“The four programmes are: increasing public expenditure, formulating a
stimulus package, widening social safety net coverage and increasing monetary
supply,” she said.
Highlighting the key aspects of the four new packages, the premier said
the first of the four packages involved Taka 30,000 crore, to be provided to
affected industries and service sector organizations as working capital
through banks as low-interest loan.
She said the commercial banks would provide the amount as loans from their
own funds to concerned industries and enterprises on the basis of bank-client
relations.
“The interest rate of this lending facility will be 9 percent, and the
concerned industries and business organisations will pay 4.50 percent
interest, meaning half of the interest of that loan, while the government
would pay remaining half to banks as subsidy,” she said.
Sheikh Hasina said under the second package, small and medium enterprises
(SMEs) including cottage industries would get Taka 20,000 crore as working
capital.
She said a mechanism would be devised to reach the amount to the SMEs as
low-interest loans through banks which identically will disburse amounts to
the SMEs on the basis of bank-client relations while the government in this
case would bear the greater share of the interest amount.
“The interest rate of this lending facility will be 9 percent and the
concerned industries and business organisations will pay 4 percent interest
of that loan, while the government will provide the remaining 5 percent as
subsidy,” the premier said.
The fourth package, she said, was meant for enhancing Bangladesh Bank’s
Export Development Fund or EDF size from US$3.5 billion to $5billion to
facilitate raw materials imports under back-to-back LC.
The prime minister said this last package would result in adding an amount
of additional Tk 12,750 crore equivalent to $1.5 billion to the EDF while its
interest rate would simultaneously be brought down to 2 percent.
The existing EDF interest rate is 2.73 percent in line with current London
Interbank Offered Rate-LIBOR + 1.5 percent.
The prime minister said under the fourth package, the central bank will
introduce a new credit facility of Taka 5,000 crore as “Pre-shipment Credit
Refinance Scheme” and its interest would be 7 percent.
Sheikh Hasina said local products alongside the export sector would deserve
special attentions and supports to cope with the possible global and domestic
economic crisis caused by the pandemic.
“In this regard, I call upon all to boost production of local products and
raise their use,” she said.
The prime minister said as a nation the people of Bangladesh have a
wonderful strength of patience and capability to rebound fast by enduring
blows of any type.
“Nothing could suppress us as a nation which snatched the independence in
1971 in only nine months responding to the call of Father of the Nation
Bangabandhu Sheikh Mujibur Rahman and may Allah protect the world people from
this pandemic,” she said.
MORE …
https://www.bssnews.net/?p=371318
DHAKA, April 5, 2020 (BSS) – Prime Minister Sheikh Hasina today unveiled
the government work plan to overcome the possible COVID-19 impact on the
country’s economy, declaring an allocation of Taka 72,750 crore under a set
of stimulus packages.
“Earlier I declared a Tk 5,000 crore (emergency) incentive package for
paying salaries and allowances of export-oriented industries workers and
employees and today I am announcing four fresh financial stimulus packages of
Tk 67,750 crore,” she said.
In a nationwide televised address from her official Ganabhaban residence
this morning, the premier said with the fresh allocations, the total amount
of financial assistance would stand at Tk 72,750 crore, which is nearly 2.52
percent of GDP.
“I hope our economy will rebound and we could reach near the desired
economic growth, if the stimulus packages, the previous and the fresh ones,
could be quickly implemented,” she said.
The premier said the government simultaneously took four programmes under
the work plan to be implemented in phases categorized as “immediate, short
and long”.
“The four programmes are: increasing public expenditure, formulating a
stimulus package, widening social safety net coverage and increasing monetary
supply,” she said.
Highlighting the key aspects of the four new packages, the premier said
the first of the four packages involved Taka 30,000 crore, to be provided to
affected industries and service sector organizations as working capital
through banks as low-interest loan.
She said the commercial banks would provide the amount as loans from their
own funds to concerned industries and enterprises on the basis of bank-client
relations.
“The interest rate of this lending facility will be 9 percent, and the
concerned industries and business organisations will pay 4.50 percent
interest, meaning half of the interest of that loan, while the government
would pay remaining half to banks as subsidy,” she said.
Sheikh Hasina said under the second package, small and medium enterprises
(SMEs) including cottage industries would get Taka 20,000 crore as working
capital.
She said a mechanism would be devised to reach the amount to the SMEs as
low-interest loans through banks which identically will disburse amounts to
the SMEs on the basis of bank-client relations while the government in this
case would bear the greater share of the interest amount.
“The interest rate of this lending facility will be 9 percent and the
concerned industries and business organisations will pay 4 percent interest
of that loan, while the government will provide the remaining 5 percent as
subsidy,” the premier said.
The fourth package, she said, was meant for enhancing Bangladesh Bank’s
Export Development Fund or EDF size from US$3.5 billion to $5billion to
facilitate raw materials imports under back-to-back LC.
The prime minister said this last package would result in adding an amount
of additional Tk 12,750 crore equivalent to $1.5 billion to the EDF while its
interest rate would simultaneously be brought down to 2 percent.
The existing EDF interest rate is 2.73 percent in line with current London
Interbank Offered Rate-LIBOR + 1.5 percent.
The prime minister said under the fourth package, the central bank will
introduce a new credit facility of Taka 5,000 crore as “Pre-shipment Credit
Refinance Scheme” and its interest would be 7 percent.
Sheikh Hasina said local products alongside the export sector would deserve
special attentions and supports to cope with the possible global and domestic
economic crisis caused by the pandemic.
“In this regard, I call upon all to boost production of local products and
raise their use,” she said.
The prime minister said as a nation the people of Bangladesh have a
wonderful strength of patience and capability to rebound fast by enduring
blows of any type.
“Nothing could suppress us as a nation which snatched the independence in
1971 in only nine months responding to the call of Father of the Nation
Bangabandhu Sheikh Mujibur Rahman and may Allah protect the world people from
this pandemic,” she said.
MORE …
