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Bangladesh Bank has raised the interest rate regarding Long Term Financing Facility (LTFF) under Financial Sector Support Project (FSSP).
Foreign Exchange Policy Department of the central bank issued a circular to this effect on Monday.
According to the circular, an indicative pricing range of 3.0 to 4.0 per cent would be applicable to the Participating Financial Institutions (PFIs) until further notice.
With the enhancement, the following matrix will be applicable: the interest rates at 3.0 per cent, 3.25 per cent and 3.50 per cent will be applicable for banks having CAMELS Rating of 1 (One) for five, seven and ten years respectively.
The rates for banks having CAMELS Rating of 2 (Two) will be 3.25 per cent 3.50 per cent and 3.75 per cent for five, seven and ten years respectively. On the other hand, the rates will be 3.50 per cent 3.75 per cent and 4.0 per cent for banks having CAMELS Rating of 3 (Three) for the same periods of time.
The revised rates will come into effect from January 01, 2023, and will be applicable for all the existing loans of the LTFF, according to the circular.