CT Online Desk:
The Bangladesh Bank (BB) has extended the Tk 1,000 crore refinance scheme for cinema hall owners until December 31 this year, allowing them to avail the low-cost fund to renovate existing facilities or set up new ones. The extension comes as the deadline for securing loans from the scheme, whose deadline ended in December 2023. Launched in February 2021, the fund aims to ensure cheaper loans for the owners of cinema halls, which lost their appeal over the past two and half decades as audiences shifted to satellite televisions and streaming services.
Bangladesh had as many as 1,235 cinemas in 1998. Currently, about 60 are in operation, according to industry operators. After the launch of the low-cost fund, the central bank asked hall owners to apply within March 2022, but many entrepreneurs were not aware about it. Since then, the central bank extended the deadline twice: first to December 2022, and then to December last year.
A large portion of the fund is, however, still unused with only Tk 18 crore disbursed through two banks as of last month. In its notice yesterday, the BB said a good number of cinema hall owners are interested in availing the loan, but a lack of clear knowledge has hindered their ability to apply during the allotted time. So, the deadline has been extended.
Under the refinance scheme, entrepreneurs can borrow Tk 10 crore to set up new theatres whereas existing owners can avail Tk 5 crore to renovate their facilities. The interest rate for end-users is 5 percent in metropolitan areas and 4.5 percent for those in other parts of the country. In contrast, the interest rate for other loans in the banking sector is nearly 12 percent. The repayment period of the loan is eight years, including a one-year grace period. Instalments have to be paid on a quarterly basis. Banks participating in the scheme need to pay an interest of 1.5 percent to the BB.
Six banks -- Premier Bank, ONE Bank, Trust Bank, Agrani Bank, Sonali Bank and Southeast Bank -- have so far signed deals with the central bank to disburse loans under the initiative.
DCT/OL/AH/END
