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NBFIs seek low-cost BB refinancing facility
FE Report
1/31/2006
The country's non-banking financial institutions (NBFIs) requested the governor of the Bangladesh Bank (BB) Monday to provide re-financing facilities to them to help set up small and medium scale export-oriented industries.
The managing directors (MDs) of all NBFIs made the request at a meeting with the BB Governor Salehuddin Ahmed at the conference room of the central bank.
They explained that the NBFIs would provide funds to entrepreneurs for setting up export-oriented industries at low interest rates if the central bank allowed re-financing facility at five per cent interest to them, meeting sources said.
The BB governor assured that he would look into the matter, the sources added.
The top executives of the NBFIs also appealed to the governor for taking necessary measures for ensuring low-cost funds form the commercial banks to them to facilitate investment in the country.
Currently, the NBFIs borrow funds from commercial banks, paying interest as high as 13 per cent for running their business.
According to the BB statistics, a total of Tk 60.91 billion was invested by the NBFIs as on June 30, 2005 against Tk 40.25 billion in the same period of the previous fiscal.
The NBFIs are mainly making investment on long term basis to help entrepreneurs as well as businessmen to contribute more to the national economy.
Besides, they urged the governor for taking measures to withdraw income tax on zero coupon bonds to facilitate the country's secondary bond market.
A total of 28 NBFIs are operating their business across the country.
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