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Bangladesh Bank (BB) today introduced a special
repurchase agreement (repo) for one year to help the banks and Non-Bank
Financial Institutions (NBFIs) provide loans under the government-declared
stimulus packages for coronavirus-hit industries.
Banks and NBFIs can take this fund by submitting their extra securities of
statutorily liquidity reserve to the central bank as lien, as per a BB
circular issued here today.
The special repo rate would be decided at the time of auction by the
auction committee, the release added.
The instruction will be in effect immediately and will be continued until
further notice.
Generally, the Bangladesh Bank supports cash to the banks and NBFIs for
regular repo for one to 28 days. Recently, it reduced regular repo’s interest
rate to 5.25 percent twice.
(BSS)
