#Title

BB gives 7 banks Tk 22,000cr in emergency funds The sum to help tidy up lenders’ balance sheets for year-end

MD MEHEDI HASAN

The central bank has extended a total of Tk 22,000 crore in emergency funds to seven beleaguered banks including five Islamic banks to dress up their balance sheet ahead of the year’s end.

On December 28, Islami Bank Bangladesh, Social Islami Bank, First Security Islami Bank, Global Islami Bank, Union Bank, Padma Bank and National Bank took the fund for three days at 9.7 percent interest, The Daily Star has learnt from Bangladesh Bank officials informed with the proceedings.

The funds were taken against ‘demand promissory note’ as the banks have no securities to offer as collateral.

A demand promissory note is a legally binding document between a borrower and a lender. With this agreement, the borrower promises to repay the money whenever the lender demands it.

The BB accepts a demand promissory note when a bank does not have available bills and bonds to provide as collateral.

SEE PAGE 2 COL 4