Fund to boost stock market on way

A Tk 9 billion ‘re-financing scheme’ has been planned to prop up the flagging capital market with the government nearing the end of its term.

“The government wants to form the fund to provide the merchant banks and brokerage houses with financial assistance after writing off the interest on loans for the affected small investors,” Bangladesh Bank’s Deputy Governor SK Sur Chowdhury said.

The huge ‘re-financing scheme’ is the first move to revitalise the market even though the government had previously took measures to form huge mutual funds.

The Bangladesh Bank’s board discussed the matter at a meeting on Monday, where it was decided that the government would be given a proposal to pump Tk 9 billion into the fund.

The central bank official, however, said formation of the fund or the scheme was yet to be finalised.

”It will be implemented once the government agrees,” he added.