In an effort to revive the moribund jute sector, Bangladesh Bank on Monday signed agreements with 16 banks to help jute mills under its Tk 200-crore refinancing scheme.
As per the deals, the central bank will provide loan to the banks at 5 percent interest rate and then the banks will charge highest 9 percent interest to provide the loans to jute mills in both public sand private sectors.
The jute exporters and other jute traders can also borrow from the banks at the same rate of interest.
The public sector jute mills will get 40 percent of the 200-crore fund while the private sector ones will get the same portion and the traders the remaining 20 percent. The refinancing scheme will run for 5 years.
While addressing the deal-singing ceremony at the central bank, its deputy governor SK Sur Chowdhury said the main objective of the refinancing scheme with soft condition is to revitalise the jute industries.
He hoped that the jute growers will ultimately get the support from the fund when the traders will be able to utilise the loan to buy their jute. “We hope the farmers who grow jute will get the fair price of their produce after the inception of the fund,” he said.
