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ICB seeks Tk 9.0b under refinancing scheme

Mohammad Mufazzal | Published: April 24, 2019 10:40:07 | Updated: April 25, 2019 12:24:59


The state-run Investment Corporation of Bangladesh (ICB) has sought the fund of Tk 9.0 billion which was earlier disbursed under the refinancing scheme of the capital market.

The corporation has sought the fund to provide 'instant' support to the capital market which recently has witnessed continuous correction amid lack of confidence.

To get the fund, the ICB has submitted a proposal to the ministry of finance (MoF).

"The discussion is going on. We are optimistic that the ministry will approve our proposal," ICB managing director Kazi Sanaul Hoq told the FE.

He said the corporation has sought the fund at lower interest rate considering the ongoing market situation.

In 2013, the ICB received Tk 9.0 billion from the central bank through three installments under the capital market refinancing scheme.

The government provided the fund to reduce the suffering of small investors affected during 2010-11 stock market debacle.

Initially, merchant banks and brokerage firms disbursed the funds against the portfolios of affected investors at an interest of 9.0 per cent.

Later, the interest rate was reduced following the plea of merchant banks and brokerage firms.

Finally, the borrowers received funds at an interest of 5.0 per cent and they disbursed the fund against investors' portfolios at an interest of 7.0 per cent.

On completion of disbursement, the concern committee has already recovered above Tk 8.0 billion which is yet to be deposited to the government's exchequer, the ICB officials said.

"The fund which was recovered has been preserved under the custody of the central bank. ICB has sought that fund at lower interest to provide instant support to the capital market," said the managing director of the ICB.

He said the central bank has also been informed of the proposal made seeking the fund.

Asked, Mohammad Saifur Rahman, an executive director of the securities regulator, said the government is the authority of approving the proposal of the state-run corporation.

"The government can approve any proposal, if it intends," Rahman said.

mufazzal.fe@gmail.com

 

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