Bangladesh Bank Launches Special Repurchase Agreement to Facilitate Lending by Financial Institutions

Bangladesh Bank (BB) has announced that it will be introducing special repurchase agreement (repo) facilities for a period of twelve months to support Banks and Non-Bank Financial Institutions (NBFIs) to issue financing facilities under the stimulus packages declared by the Government of Bangladesh. This will be effective immediately and will continue until further notice, according to a circular issued by BB.

Prior to this announcement, BB was providing funding to banks and NBFIs for regular repo for one to 28 days. In addition, BB had also recently reduced the repo financing rate to 5.25%, to assist banks to receive financing from BB at lower rates. The cash support of BB will be utilized only for enactment of the stim...