Bangladesh Bank Launches 2,000 Crore BDT Scheme for Frozen Food Exports
Bangladesh Bank has launched a 2,000 crore BDT special pre-finance scheme to boost the frozen food export sector. Participating banks will receive funds at 4 percent interest, while entrepreneurs face a maximum rate of 7 percent.
On Sunday, August 31, Bangladesh Bank officially launched a significant 2,000 crore BDT special pre-finance scheme designed specifically to boost the frozen food export sector. According to the central bank, this financial initiative will be operated entirely on a revolving basis with a designated three-year term, utilizing the institution's own internal funds to support eligible industry stakeholders across the country.
Under the newly established financial structure, participating commercial banks will obtain funds directly from Bangladesh Bank at an attractive interest rate of 4 percent. In turn, these participating financial institutions will extend credit to eligible business entrepreneurs at a maximum interest rate of 7 percent. However, the central bank has explicitly stipulated that any individuals or entities classified as loan defaulters are strictly ineligible to receive this facility.
The financing scheme provides various tiers of credit depending on the specific operational needs of the businesses. New factories seeking to establish operations can secure term loans of up to 30 crore taka. These term loans carry a maximum tenure of seven years, which includes a one-year grace period, while requiring borrowers to maintain a strict 70:30 debt-equity ratio.
For existing enterprises, the scheme offers substantial financial support aimed at upgrading their operational infrastructure. The renovation, expansion, and modernization of existing factories can receive loans of up to 20 crore taka with a tenure of up to five years. Additionally, working capital loans capped at 20 crore taka are available for a duration of one year, and these may be renewed once for up to two additional years provided the borrower demonstrates satisfactory operational performance.
Environmental sustainability is also a key component of the new pre-finance initiative. Additional loans dedicated to the installation of solar panels are capped at 5 crore taka or 30 percent of the main project cost, whichever amount is lower. Furthermore, borrowers are mandated to meet specific regulatory standards by obtaining essential clearances from relevant oversight bodies, specifically including the Department of Fisheries and the Department of Environment.
