Bangladesh Bank (BB) has doubled the size of its refinance scheme to Tk 1,500 crore for marginalised groups, small businesses and students in a bid to help them improve their living conditions. The central bank's decision is expected to open new avenues for marginal farmers and small entrepreneurs across the country.

Scheme Objectives and Benefits

The central bank announced the expanded refinance scheme on Thursday (November 12). Under the new scheme, marginal farmers, small entrepreneurs and students will have access to loans on easier terms. The initiative is expected to contribute significantly to the government's inclusive economic development goals.

Priority Sectors

According to the Bangladesh Bank announcement, special priority will be given to smart card-holding farmers, disaster-affected people, ethnic minorities, third-gender individuals, persons with disabilities and migrant workers who have returned home. The primary objective of the scheme is to economically empower these segments of the population.

TCB's Preparations for Ramadan

Meanwhile, ahead of the holy month of Ramadan, the state-run Trading Corporation of Bangladesh (TCB) is planning to include 6 lakh additional beneficiaries in its programme. TCB is also preparing to import additional quantities of edible oil, pulses and sugar for open-market sales (OMS), enabling consumers without TCB smart cards to benefit from the government's Ramadan supply programme.

Economic Implications

Analysts believe that this large-scale refinance scheme by Bangladesh Bank will play a crucial role in improving the socio-economic conditions of marginalised communities. The loan support for small entrepreneurs and farmers is particularly expected to be effective in creating employment opportunities and revitalising the rural economy.