The first of four packages unveiled by the prime minister involves Tk 30,000 crore. It will be provided to affected industries and service sector organisations as working capital through banks as low-interest loans.
This portion of the fund will revolve. It is known that working capital is given for a short period. Borrowers pay back the loans from four to six months. If banks can use the fund efficiently and borrowers repay the loans on time, then the fund could be used in disbursing loans up to Tk 60,000 crore a year.
In the same vein, the four credit facilities announced by the prime minister could create loan facilities of more than Tk 135,000 crore if used properly.
As the credit risks would be borne by the commercial banks, moral hazard would not be created and the quality of loans would improve. This will help improve the economic situation faster.
The four packages have covered the whole segment of the economy. The packages for the larger industries and the services sector and the cottage, small and medium enterprises are different so that there is no overlap.
The second package would help the agro-processing industries, fisheries, poultry, dairy farms. The micro and SME industries has been given special priority.
The finance division will work with Bangladesh Bank when the central bank works on formulating guidelines for the packages. We will also consult the allied associations before formulating the guidelines in order to implement the packages smoothly.