ACD Circular Letter No. 01: Regarding the imposition of fixed concessional interest/profit at the customer level for refinancing tenure

Phone: 88-02-9550448, 9554896, IP: 88-02-55665001-6, Fax: 88-02-9530479, Domain: bb.org.bd

Bangladesh Bank (Central Bank of Bangladesh) Head Office Motijheel, Dhaka-1000 Bangladesh. 15 Jyestha 1431

ACD Circular Letter No. - 1 Date: -------------- 29 May 2024

Managing Director / Chief Executive Officer All Banks Operating in Bangladesh.

Regarding the imposition of fixed concessional interest/profit at the customer level for refinancing tenure.

Dear Sir,

Attention is invited to the policies formulated by this department regarding the refinancing scheme.

Under the refinancing scheme, Bangladesh Bank has been providing refinancing facilities at concessional interest/profit to the concerned participating banks in favor of agricultural and fisheries loans/investments distributed to customers.

It has recently been observed that some banks are charging additional interest/profit rates over and above the applicable concessional interest/profit rate for the refinancing tenure approved by Bangladesh Bank, on loans/investments refinanced under the scheme that are held for their full or partial maturity period.

It is clarified here that under the refinancing schemes formulated by this department, no additional interest/profit shall be charged to customers for the refinancing tenure for loans/investments refinanced under the scheme, even if they are held for their full or partial maturity period.

Yours faithfully,

(Kaniz Fatema) Director (ACD) Phone: 9530138 Agricultural Credit Department 50119