Business Desk :
The Bangladesh Bank (BB) has instructed to stop using incentive loans in unproductive sectors.
The financial institutions and markets division of the central bank today issued the directive in a circular to the heads and managing directors of all financial institutions.
The circular stated that some of the incentives announced by the government were used in unproductive sectors undermining the real purpose of the incentive packages. Moreover, in many cases, incentives are being used to deal with other loans of the borrower which is absolutely not acceptable.
In this context, Bangladesh Bank has suggested regular monitoring, as well as, verification through the internal audit department to ensure proper usage of incentive loans after its disbursement to the financial institutions.
