Bangladesh Bank (BB) has launched a Tk 20,000 crore revolving pre-finance scheme to help revive closed and underutilized large-scale industrial and service sector enterprises, aiming to restore production, create employment and strengthen the country's industrial base. The central bank introduced the 'Closed Industry and Service Sector Facilitation Pre-finance Scheme' to provide working capital support to eligible enterprises in line with the National Industry Policy.
Scheme Details and Eligibility
Under the scheme, a single borrower or group can receive up to Tk 200 crore as a one-year continuous loan or investment, which can be renewed subject to satisfactory performance and fund availability. Bangladesh Bank will provide funds to participating financial institutions (PFIs) at an interest rate of 4 percent, while the maximum lending rate for borrowers has been capped at 7 percent.
Objectives and Benefits
The facility is designed to help industries facing production disruptions or operating below capacity by financing operational expenses, including the procurement of raw materials, payment of utility bills, execution of export orders and payment of up to four months' salaries and wages. Salary payments must be made through bank accounts or Mobile Financial Services (MFS), while cash disbursement is prohibited.
Priority and Assessment
Export-oriented industries and deemed exporters will receive priority under the scheme. To ensure sustainable revival, participating financial institutions have been directed to conduct detailed assessments of applicants, including identifying the causes behind previous operational failures and verifying that corrective measures have been implemented before extending financing.
Governance and Compliance
The scheme includes strong governance and compliance measures. Borrowers must obtain certification from their respective trade associations, such as the FBCCI, BGMEA or BKMEA, while defaulted borrowers will not be eligible for financing. In addition, borrowers must obtain the facility through the same bank or financial institution that financed their original project, and all transactions must be routed through designated escrow or revenue accounts.
Expected Impact
Bangladesh Bank expects the initiative to accelerate the reopening of viable industries, enhance production capacity, support exports, preserve employment and contribute to stronger economic growth by bringing idle industrial assets back into operation. 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.
