The government has decided to provide a sovereign guarantee for a Tk 3,000 crore loan from the Bangladesh Bank to the Investment Corporation of Bangladesh, which actually removed all obstacles to securing this financing for capital market development.
Financial Institutions Division of the Ministry of Finance issued a notification in this regard on November 5.
According to the letter, the ICB requested the FID to take necessary measures to provide a sovereign guarantee for sanctioning and disbursing a loan of Tk 3,000 crore for the purpose of increasing the capacity of the institution and developing the capital market.
A meeting was held in this regard on October 17 with the FID, central bank, Bangladesh Securities and Exchange Commission and ICB present.
The meeting recommended that the ICB take necessary measures to obtain consent of the finance department for receiving the loan from the Bangladesh Bank.
Finance adviser Salehuddin Ahmed聽approved of this loan after a summary was presented to him, the letter read.
The letter also stated that relevant documents were sent as per instructions for granting a state guarantee of the loan from the central bank to the ICB.
The letter further mentioned that earlier when the FID sent a letter to the central bank to sanction a Tk 5,000 crore loan to the ICB, the Bangladesh Bank said that it would consider the matter with an application including the sovereign guaranty.
