Home ›› 03 Aug 2021 ›› Front
Bangladesh Bank has directed all non-bank financial institutions to ensure the appropriate use of funds taken from stimulus packages to fight the economic fallout of Covid-19.
BB’s financial institutions and market department sent the new directives through a letter to the managing directors and CEOs of financial institutions.
The government first announced stimulus packages at the end of March 2020 to help Covid-hit people stay afloat and boost economic activities. According to BB, the government announced 23 packages worth Tk 1,28,303 crore.
“Many institutions are using loans from the packages in other sectors. Although we didn’t receive any complaint against any specific organisation, we gave instructions in advance as a precaution,’’ Zulkar Nayn, general manager of the department of financial institutions and markets, told The Business Post.
The Bangladesh Bank also said that it was actively involved in the disbursement of nine out of the 23 stimulus packages.
Recent media reports suggest that receivers of the loans used them in unproductive sectors, including the stock market. This prompted the central bank to give out strict orders to all banks and NBFIs to stop the misuse of stimulus funds.
After a meeting chaired by the central bank governor yesterday, a committee was formed to ensure the proper use of the funds.
