Tk 2,000 crore refinance scheme for shipbuilding industry

Bangladesh Bank has formed a Tk 2,000 crore refinance scheme to ensure sustainable development of the shipping industry, increase export earnings and employment and gradually reduce import dependence.

The refinance scheme was formed under the Shipbuilding Industry Development Policy 2021, according to a circular of the banking regulator today.

Under the scheme, a customer can get loans at 4.5 per cent interest. However, the maximum limit of the loan was not mentioned in the circular.

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A customer can get term-loans for a maximum of 12 years, where the grace period will be 3 years.

The loan application deadline is set for June 30, 2024, according to the circular.

However, no loan will be given for the construction of dockyard, land purchase or lease and the loan taken from this scheme cannot be used to repay any other loan.

Working capital loan is also eligible under the scheme for one year and loans can be renewed if the business is good.

However, the loan (working capital) cannot be renewed for more than 3 years, the circular reads.

Bangladesh has more than 100 shipbuilding yards, most of which serve the local market worth more than Tk 3,000 crore.