The government on Thursday (July 30) disbursed Tk 1,000 crore to three state-run specialized banks and Palli Karma Sahayak Foundation (PKSF) in an aim to provide credit for youths, including returnee expatriates, who are financially affected by coronavirus induced financial fallout.
Three specialized banks are Karmasangsthan Bank, Probashi Kallyan Bank, and Palli Sanchay Bank. These 3 banks and PKSF received Tk 250 crore each.
Finance division released the first tranche of fund as part of this year budget allocation of Tk 2,000 crore to create jobs for unemployed youths, the rural poor and to rehabilitate returnee expatriates hit hard by the Covid-19 pandemic.
With the condition of anonymity, an official of finance division said, “We have already asked the top officials of the three specialized banks and PKSF to provide loan with zero interest rate to young people interested to start small businesses which will in turn create jobs amid coronavirus pandemic. These financial institutions will not return the money back.”
The official also said the next tranche will be disbursed within short time so that more people can take financial benefits of the funds.
The policymakers of these specialised financial institutions said they are fully prepared to issue loans from the fund.
Palli Sanchay Bank Managing Director Akbar Hossain over phone said, “We have completed negotiations with finance division regarding the fund, however, we are yet to receive the finance division letter.”
The government is trying to finance the fund from Asian Development Bank (ADB) as it sought $1 billion in assistance from ADB. From that assistance, Tk1,000 crore has been released to these four financial intuitions. Another Tk1,000 crore will be released in the next tranche.
On May 7, ADB approved an additional $500 million loan to bolster the efforts of the government to manage the impact of novel coronavirus pandemic on the country’s economy and the public health.
