The government will earmark some Tk 100 billion in the upcoming budget to provide subsidies against interest of the 23 Covid-linked incentive packages.
Last year, the government announced 23 incentive packages, involving Tk 1.24 trillion to help the pandemic-hit sectors as well as people to come out from the shock and make recovery.
The tenure of disbursing loans from these stimulus packages will end on June 30, but still
However, a large portion of funds remains undisbursed while the stimulus package tenure will end on June 30, this year.
According to the Ministry of Finance officials, the government is planning to enhance the tenure of the stimulus packages by two to three more years.
The government will provide half of the total interest of the stimulus loan packages to the implementing banks and financial institutions as a subsidy, while the borrowers will pay the rest.
They said if the pandemic situation does not improve and its third wave hits Bangladesh, the government may need to announce some more stimulus packages to enhance the size of the existing packages to support various hard-hit sectors.