Bangladesh Bank to Form Tk 20,000 Crore Fund to Revive Ailing Industries

Under this initiative, affected industrial units and those committed to debt repayment will receive working capital at low interest rates, along with long-term credit facilities in specific cases. Sources indicate that while the market interest rate for these loans may be around 13%, it is likely to include a government subsidy of up to 5%, bringing the effective cost down for entrepreneurs.

Prime Minister Tarique Rahman is expected to formally announce the fund later this week. This initiative aligns with his recent pledge made during a May Day rally to safeguard workers' rights by restarting shut factories. A high-level committee, led by Bangladesh Bank Deputy Governor Md. Kabir Ahmed, has already begun drafting the full policy guidelines for the fund. Commercial banks have been instructed to submit lists of closed or partially closed factories that hold outstanding loans exceeding Tk 100 crore.

Central bank spokesperson Arif Hossain Khan stated that the government and the central bank are working jointly to identify genuinely affected and viable industrial units. Meanwhile, commercial banks have sought government guarantees to mitigate credit risks and called for strict monitoring to ensure the proper utilization of the funds. This initiative marks the government’s largest economic recovery plan for the industrial sector since the political transition in 2024.