Injection of money in the form of loans into the country’s economy reached Tk 65,622 crore at the end of January of 2021 under 10 stimulus packages through the banking channel, according to a Bangladesh Bank report.
The implementation of the stimulus packages is supervised by the central bank.
BB governor Fazle Kabir released the report titled ‘Policy Measures of Bangladesh Bank in Response to the COVID-19 Pandemic’ at the central bank’s headquarters in Dhaka on Sunday.
BB deputy governors Ahmed Jamal and Kazi Sayedur Rahman, and executive director Md Habibur Rahman, among others, attended the launching event.
Under the 10 stimulus packages, Tk 97,917 crore was announced to be disbursed to different sectors to support the sectors to minimise the economic fallout caused by the outbreak of coronavirus on March 8, 2020.
The implementation of the packages represents 67.01 per cent of the target size.
Apart from the monetary support, the central bank brought in a number of policy supports for the banks to implement the stimulus packages.
In the report, Fazle Kabir said, ‘The BB promptly responded with an expansionary monetary policy stance incorporating a wide range of supportive financial sector policies in synchronisation with the government’s stimulus packages and expansionary fiscal policy to counteract the deceleration of Bangladesh’s economic growth.’
‘The main objective of the policy measures is to support faster recovery of economic growth for sustaining the livelihood of the people,’ he said.
Since the onset of COVID-19 outbreak, the government as well as the central bank has floated 23 packages worth Tk 1,24,053 crore.
Of the 10 packages of the BB, Tk 5,000 crore in stimulus loans, announced for the payment of salary and allowances of workers-staffs of active export-oriented industries, was the lone package that has already been implemented fully.
In terms of value, the stimulus package for working capital loans meant for adversely affected large industry and service sector borrowers was the highest and its implementation reached 91.53 per cent at the end of January.
The banks have disbursed Tk 30,270 crore out of Tk 33,000 crore from the package.
Another Tk 147 crore from the Tk 7,000 crore in stimulus package for the working capital loans meant for A, B and C type industries has been disbursed.
Implementation of the second highest, Tk 20,000 crore package meant for the cottage, micro, small and medium entrepreneurs, reached Tk 11,592 crore or 57.96 per cent even after the extension of time for a number of occasions.
Under the agriculture refinance scheme, the banks have disbursed Tk 3,466 crore out of Tk 5,000 crore to the farmers.
For the payment of interest subsidy against the suspended interest for the month of April and May of the year 2020, the central bank has disbursed Tk 1,390 crore to the commercial banks.
From the export development fund, the BB disbursed Tk 9,132 crore out of the Tk 12,750 crore.
Of the Tk 3,000 crore in refinance scheme for low-income earning professionals, farmers and small businesspeople, the disbursement has reached Tk 1,429 crore.
From a Tk 5,000-crore in pre-shipment credit refinancing scheme, the exporters have received Tk 136 crore.
Banks’ disbursement as agricultural loans for crops and harvest sector at 4 per cent concessional interest rate to the farmer reached Tk 3,167 crore.
Apart from these, the central bank formed another Tk 2,000 crore in credit guarantee scheme.