ZCZC
BSS-07
PM-COVID-STRATEGY LEAD
PM unveils Tk 72,750 crore package to overcome Covid-19 impact
(Updates with more remarks of PM and others)
DHAKA, April 5, 2020 (BSS) – Prime Minister Sheikh Hasina today unveiled
the government work plan to overcome the possible COVID-19 impact on the
country’s economy, declaring an allocation of Taka 72,750 crore under a set
of stimulus packages.
“Earlier I declared a Tk 5,000 crore (emergency) incentive package for
paying salaries and allowances of export-oriented industries workers and
employees and today I am announcing four fresh financial stimulus packages of
Tk 67,750 crore,” she said.
In a nationwide televised address from her official Ganabhaban residence
this morning, the premier said with the fresh allocations, the total amount
of financial assistance would stand at Tk 72,750 crore, which is nearly 2.52
percent of GDP.
“I hope our economy will rebound and we could reach near the desired
economic growth, if the stimulus packages, the previous and the fresh ones,
could be quickly implemented,” she said.
The premier said the government simultaneously took four programmes under
the work plan to be implemented in phases categorized as “immediate, short
and long”.
“The four programmes are: increasing public expenditure, formulating a
stimulus package, widening social safety net coverage and increasing monetary
supply,” she said.
Highlighting the key aspects of the four new packages, the premier said the
first of the four packages involved Taka 30,000 crore, to be provided to
affected industries and service sector organizations as working capital
through banks as low-interest loan.
She said the commercial banks would provide the amount as loans from their
own funds to concerned industries and enterprises on the basis of bank-client
relations.
“The interest rate of this lending facility will be 9 percent, and the
concerned industries and business organisations will pay 4.50 percent
interest, meaning half of the interest of that loan, while the government
would pay remaining half to banks as subsidy,” she said.
Sheikh Hasina said under the second package, small and medium enterprises
(SMEs) including cottage industries would get Taka 20,000 crore as working
capital.
She said a mechanism would be devised to reach the amount to the SMEs as
low-interest loans through banks which identically will disburse amounts to
the SMEs on the basis of bank-client relations while the government in this
case would bear the greater share of the interest amount.
“The interest rate of this lending facility will be 9 percent and the
concerned industries and business organisations will pay 4 percent interest
of that loan, while the government will provide the remaining 5 percent as
subsidy,” the premier said.
The fourth package, she said, was meant for enhancing Bangladesh Bank’s
Export Development Fund or EDF size from US$3.5 billion to $5billion to
facilitate raw materials imports under back-to-back LC.
The prime minister said this last package would result in adding an amount
of additional Tk 12,750 crore equivalent to $1.5 billion to the EDF while its
interest rate would simultaneously be brought down to 2 percent.
The existing EDF interest rate is 2.73 percent in line with current London
Interbank Offered Rate-LIBOR + 1.5 percent.
The prime minister said under the fourth package, the central bank will
introduce a new credit facility of Taka 5,000 crore as “Pre-shipment Credit
Refinance Scheme” and its interest would be 7 percent.
Sheikh Hasina said local products alongside the export sector would deserve
special attentions and supports to cope with the possible global and domestic
economic crisis caused by the pandemic.
“In this regard, I call upon all to boost production of local products and
raise their use,” she said.
The premier cautioned all concerned not to be indulged in any type of
corruption, irregularity and misuse taking the opportunity of this crisis.
“I want everybody to work with utmost sincerity and honesty. Taking the
opportunity (of the crisis), don’t to be indulged in any type of corruption,
irregularity and misuse and it’s my clear word,” Sheikh Hasina said.
She continued: “If we can do work properly, the people of any section won’t
endure any problem, and we’ve made this arrangement keeping this in mind.”
The prime minister mentioned that farmers, fishermen, weavers, blacksmiths,
potters, small traders, and others who are involved in various businesses
like poultry, dairy and fishing were worried about their loan and other bills
including electricity due to the present crisis evolved for the coronavirus
pandemic.
“But, we’ve taken various steps to remove their anxieties, and they don’t
face any problem in future and continue their business smoothly,” she said.
Sheikh Hasina went on saying: “I don’t want anybody to suffer and our
responsibility is to mitigate hardship of all … we’ve announced the
packages to achieve the goal and (I hope) everybody will get its results.”
The prime minister said as a nation the people of Bangladesh have a
wonderful strength of patience and capability to rebound fast by enduring
blows of any type.
“Nothing could suppress us as a nation which snatched the independence in
1971 in only nine months responding to the call of Father of the Nation
Bangabandhu Sheikh Mujibur Rahman and our aim is to advance further by
containing the everlasting messages of the Father of the Nation in our hearts,” she said.
Finance Minister A H M Mustafa Kamal, Senior Secretary of Finance Ministry
Abdur Rouf Talukder, Bangladesh Bank (BB) Governor Fazle Kabir also spoke at
the press conference, moderated by PM’s Press Secretary Ihsanul Karim.
PM’s Principal Secretary Dr Ahmad Kaikaus and Prime Minister’s Office (PMO)
Secretary Md Tofazzel Hossain Miah were also present, among others.
MORE/SH/GMR/AR/1404 hrs