Except for six banks and one financial institution, all banks have received special treasury bonds issued by the Bangladesh government to address loan recovery risks in the power and fertiliser sectors. The total value of these bonds is Tk 20,348 crore, with Tk 10,594 crore allocated for the power sector and Tk 9,754 crore for the fertiliser sector. The finance ministry’s target is to issue bonds worth Tk 22,857 crore, with Tk 12,857 crore allocated for power and Tk 10,000 crore for fertiliser. Bonds have not been issued to Commercial Bank of Ceylon, Citibank NA, HSBC, Standard Chartered Bank, Agrani Bank PLC, and non-bank financial institution Infrastructure Development Company Limited (IDCOL). Interest on these bonds is set at 7.7%, nearly equal to the repo rate set by Bangladesh Bank, with tenures ranging from 8 to 10 years. Until June 2023, outstanding subsidy in the fertiliser and power sectors was around Tk 42,000 crore, with Tk 15,000 crore for power companies and Tk 10,500 crore for fertiliser importers.
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