Ten banks have agreed to provide liquidity support to nine struggling banks through the interbank market, with the central bank guaranteeing repayment if these troubled banks fail. The decision followed a meeting with the central bank, which assured security to the lending banks. Five of the nine banks have already signed memorandums of understanding, and two more are in line, but no support has been disbursed yet. The liquidity support, available for three months and possibly extendable up to one year, will be allocated by the central bank, with interest rates varying based on the standing lending facility rate, currently at 11%. The troubled banks, some recently restructured, collectively requested Tk 25,000 crore in assistance, with individual requests ranging from Tk 1,500 crore to Tk 7,900 crore. These banks, operating with a combined negative balance of Tk 18,165 crore at the central bank, rely on this lifeline to meet critical obligations and address deposit withdrawals.
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