The central bank is likely to introduce a Tk 15,000 crore to Tk 20,000 crore low-cost fund to help revive closed factories in the country.

Industries and factories that have been shut down due to unavoidable reasons and are willing to repay their loans will be able to access low-interest working capital loans from this fund. In some cases, firms may also receive term loans.

The interest rate on the loans could be set at 13 percent, with a possible 5 percent subsidy, The Daily Star learned this from Bangladesh Bank officials involved with the proceedings.

Prime Minister Tarique Rahman is expected to formally announce the formation of the fund to revive closed factories later this week, they added.

Speaking at a rally organised by the Jatiyatabadi Sramik Dal on Friday to mark May Day, Tarique said steps would be taken to ensure workers’ rights and strengthen the economy by reopening shuttered factories.

A committee headed by BB Deputy Governor Md Kabir Ahmed has begun drafting a comprehensive policy before forming the fund.

Banks have been asked to provide lists of closed factories along with updated information on their loan status, said BB spokesman Arief Hossain Khan.

Only factories with loans exceeding Tk 100 crore have been included in the request, while separate lists have been sought for fully closed and partially closed factories.

Discussions are ongoing with the government on what type of support can be provided to revive closed factories.

Once the discussions are finalised, the fund will be formed and the policy will be issued, he said.

To this end, the banking regulator held a meeting with commercial banks on Sunday, said BB officials.

“We sought advice from bankers on how to identify genuinely affected factories and those intending to repay bank loans, along with other details of the policy in this regard,” said a central bank official who attended the meeting.

In the meeting, bankers sought a government or BB guarantee so that they could be compensated if loans provided to restart closed factories turned into defaults or “bad loans” again.

They demanded additional collateral from entrepreneurs in addition to existing security for new lending.

They also sought the option to appoint consultants on behalf of banks to monitor whether factories are being properly operated and whether loan funds are being used appropriately.

After the fall of the Awami League-led government in August 2024, the BB under the interim government introduced an easy loan rescheduling policy for affected factories and industries.