2,253 crore special bonds for another 9 banks

The government has decided to issue more special bonds for lenders who are unable to pay the fertilizer subsidy. At this stage two government and 7 private banks are being given bonds of Tk 2,253 crores. A memorandum of understanding (MoU) was signed with the finance department of the finance ministry, banks and lending companies at the secretariat on Wednesday.

Unable to pay the subsidy, the government at the end of last year decided to issue a special bond of around Rs 10,000 crore for fertilizers alone. Out of this 447 crores to Agrani Bank, 282 crores to Bangladesh Krishi Bank, 473 crores to Al-Arafah Islami Bank, 397 crores to City Bank, 392 crores to Dhaka Bank, 90 crores to UCBL, 69 crores to SIBL, 56 crores. 47 crore to NRBC and Exim Bank yesterday. The bond issue is the MoU.

The special bond issue has started from January 4 this year. On that day 3 thousand 16 crores i.e. 2 thousand 557 crores in favor of Sonali Bank and 459 crores in favor of IFIC Bank were given special bonds. Later, another bond of Tk 2,400 crore was given to Islami Bank and Tk 1,896 crore to Janata Bank.

Bangladesh Chemical Industries Corporation (BCIC), Bangladesh Agricultural Development Corporation (BADC) and other institutions import fertilizers through banks. But the government could not provide the subsidy. The government is in the process of issuing these special bonds to pay off the liabilities of the banks.

The government has released a special bond of Tk 9,565 crore in 1 month and 10 days to pay the arrears of fertilizer subsidy. 13 public and private banks have accepted the bonds. Fertilizer subsidy will be completed at this stage by issuing a bond of about Tk 250 crore in favor of private bank Asia.

Bangladesh Chemical Industries Corporation (BCIC) sought Sonali Bank's cooperation in importing fertilizers in late November last year. BCIC told Sonali Bank that till last June, only 8400 crore rupees were owed to the government due to urea fertilizer subsidy.

The government's decision was to issue special bonds worth Rs. Of this, about 20 thousand crores of bonds have been released.