Seventeen banks have preliminarily agreed to provide Tk41,000 crore for Bangladesh Bank’s Tk60,000 crore incentive package aimed at restarting long-closed factories and reviving a stagnant economy. The initiative comes as gas and electricity shortages disrupt industrial production, close factories and threaten jobs and exports. Bangladesh Bank is expected to sign formal agreements with the participating banks this week.

Bangladesh Bank announced the package on May 23. Commercial banks are to provide Tk41,000 crore, while Tk19,000 crore will come from the central bank’s refinancing fund. The largest allocation, Tk20,000 crore, is reserved for reopening closed factories, with private-sector borrowers expected to receive loans at an average interest rate of 7.5 percent. Thirty-seven banks have already signed agreements for loan disbursement under the fund.

Industry entrepreneurs warned that financing closed factories without resolving the energy crisis could increase risks for banks. Economists said the plan could help if eligible firms are selected properly and loans are monitored closely. Bangladesh Bank officials said a dashboard will track lending, verify whether firms are genuine and productive, and monitor the use of loan funds.