Finance minister AHM Mustafa Kamal has said the government has no plan to offer any fresh stimulus package for businesses as they have already got better policy and fiscal supports.
"I think the investors, enterprises and businesses have different options at this moment for securing capital support to continue their operations and industrial production," he told the FE.
"The private sector now has many avenues. In addition to the commercial banks, they can go to the capital market or the bond market to meet their financing needs," he said.
In an interview with the Financial Express recently, Mr Kamal outlined his plans and actions in response to the impact of COVID-19 pandemic on the Bangladesh's economy.
"Once we did not have a bond market. But now we have prepared suitable laws for setting up the bond market. So I think we have different options from where the investors can get support for continuing their business," he added.
The minister said commercial banks had earlier charged 17-18 per cent interest rates on their lending.
"It is no more today. So, we think the country will attract more investment," he said.
"Besides, we do not have tension at this moment because commercial banks have surplus liquidity," he added.
The government had announced a series of rescue packages to help micro, small, medium and large enterprises and businesses secure working capital, he said.
"You know that the micro, small and medium enterprises are the key driving force of our economy. We are giving special care to them with the stimulus package," he added.
Mr Kamal said when the micro and small enterprises would borrow from banks, the government will pay half of the interest banks will charge on loans.
The government has recently announced some stimulus packages for the COVID-19-affected export-oriented industries, local enterprises and businesses and the agriculture sector for weathering the deadly impact of the pandemic.
Among the packages, the biggest one is Tk 727.50 billion in the form of working capital for the micro, small, medium and big industries. Under the package, such enterprises could borrow from the banks at 4.0 to 4.5 per cent interest rate. The remaining 4.5 to 5.0 per cent interest would be borne by the government on behalf of the enterprises and businesses.
Mr Kamal said along with the stimulus package, the government is moving ahead on the right path.
Mr Kamal was upbeat on the government's 100 special economic zones, or SEZs, as he expected a quantum leap in Bangladesh's investment scenario with the influx of many local and foreign investors. "In the SEZs, our infrastructure, logistical and all other facilities are ready. So, we are expecting foreign direct investment more in the coming days," he said.
