BRPD Circular Letter No. 13: Bangladesh Bank Refinance Scheme for Jute Sector

Ref: BRPD Circular Letter No. 13 Banking Regulation and Policy Department Bangladesh Bank Head Office Dhaka. June 23, 2019 BRPD Circular Letter No. 13 Date: ----------------- Ashar 09, 1426

To, Managing Director / Chief Executive Officer All Scheduled Banks operating in Bangladesh.

Dear Sir,

With reference to the Bangladesh Bank Refinance Scheme (BBRS) for the Jute Sector.

2. You are requested to refer to BRPD Circular No. 11, dated June 09, 2014, on the subject cited above.

3. In order to provide assistance to the jute sector, specifically for the purchase of jute from farmers, the Bangladesh Bank established a Refinance Scheme (BBRS) in 2014 for a period of up to 5 years, with a maximum limit of 200 (Two Hundred) Crore Taka, and issued the operational guidelines for the scheme through the aforementioned circular. Now, it has been decided to increase the amount of the said Refinance Scheme (BBRS) by an additional 100 (One Hundred) Crore Taka, raising it to 300 (Three Hundred) Crore Taka, and to extend the maturity of the fund by 05 (Five) years. In this regard, banks will receive funds at the Bank Rate, and banks will provide loans to jute mills/jute exporters at a fixed rate of interest, subject to the payment/settlement of interest at a maximum rate of 8% (eight percent) per annum on a quarterly basis.

4. Except for the aforementioned changes, all other instructions of BRPD Circular No. 11/2014 will remain unchanged.

This directive will take immediate effect.

Please acknowledge receipt.

Yours faithfully,

(Debashis Chakraborty) Deputy General Manager Phone: 9530336