Bangladesh has approved low-cost loans to industries including major steelmakers Bangladesh Steel Re-Rolling Mills (BSRM) and GPH Ispat under a stimulus package to mitigate the adverse impact of COVID-19 pandemic, according to local media.

 

Bangladesh’s stimulus package includes disbursal of BDT30,000 crore ($3.5bn) as working capital loans at 9pc interest rate. BSRM and GPH Ispat, along with Runner Automobiles and Shanta Holding have secured BDT17.50 crore, BDT15 crore, BDT10 crore and BDT25 crore, respectively.

 

Steelmakers have pinned their hopes on huge government investments which could help kickstart the economy. A leading steel mill booked a ferrous scrap bulk cargo of 37,000mt this week and has enquired for two more bulk cargoes. The local scrap market is upbeat following the government impetus, which has helped improve liquidity.

 

Bangladesh’s central bank decided to introduce stimulus package on April 12. The process of loan disbursal has begun at a low pace as some of the lenders are yet to release funds despite the central bank’s approval.

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