BB offers refinancing loan scheme for tourism sector

The Bangladesh Bank has announced refinancing against working capital loans for tourism sector hard-hit by the pandemic.

The central bank on Monday issued a notice in this regard.

As per the notice, the banks that disbursed working capital loans to the tourism sector under the stimulus fund would be able to get 50 per cent of their disbursed loans as refinancing from the Bangladesh Bank.

The interested banks have to apply to the central bank between November 01, 2021 and October 31, 2022 to get the refinancing.

The central bank on July 15 declared Tk 1,000 crore stimulus package to give a cushion to the owners of hotels, motels and theme parks bearing the brunt of business slowdown amid the coronavirus pandemic.

The owners of residential hotels and theme parks will be able to get fund from the scheme at 4 per cent interest rate.

Banks, however, will enjoy 8 per cent interest rate as the government will give 4 per cent subsidy to them.

The repayment tenure of the fund is maximum one year. The owners of hotels and theme parks will get loans in the form of working capital, according to the central bank notice.

According to the Tour Operators Association of Bangladesh, the sector had to incur a loss of around Tk 20,000 crore due to the pandemic since last year.

Hotels and resorts in tourist destinations and star hotels in the capital started their slow recovery in August , after the lockdown measures and other restrictions were slowly eased.

According to industry insiders, hotels in Cox’s Bazar, Chittagong and in the capital were the worst victim of pandemic.