Bangladesh Bank has extended the deadline for banks to join a Tk 2,000 crore refinance scheme that supports the country’s shipbuilding industry, giving lenders and yard owners more time to plan long term investments and turn marine engineering into a stronger export earner. The move comes through a fresh circular from the central bank, which explains that the later deadline is meant to help more banks take part and to ensure that promising shipbuilding projects do not stall because of a lack of affordable finance. Under the scheme, all scheduled banks in the country are eligible to apply, but they must first sign a participation agreement with the relevant department at the central bank before they can access the fund. Once registered, each bank will still make its own credit decisions based on internal policies and risk checks, yet they are required to seek confirmation from the central bank on the availability of refinance money before approving any loan to a client. To receive that confirmation, banks have to submit a clear schedule showing how and when the loan will be disbursed and repaid, which encourages careful planning from the very start of a project. Loans to shipbuilders are to be released in stages tied to real work progress, such as key construction milestones, so that money flows in line with the physical development of each vessel or related facility. After disbursing funds from their own resources, banks can then claim refinance from the central bank, including for interim installments, helping them manage liquidity during long and capital-intensive projects. The framework also opens a door for Shariah-based financing, as Islamic banks and conventional banks with Islamic windows are allowed to provide investment under the scheme using modes of finance that follow approved principles. This means clients who prefer interest-free structures can still benefit from the programme through profit-sharing or lease-style contracts. By stretching the application window and keeping the core rules intact, the central bank aims to give shipbuilders more certainty that patient capital will be available as they upgrade yards, add new equipment, or take on larger export orders. Supporters of the scheme believe that with the right backing, local shipyards can build more coastal vessels, cargo ships, and specialised craft that compete in regional and global markets, creating skilled jobs for engineers, welders, designers, and many others. The refinance line is also expected to encourage banks that were previously cautious about the sector to step in, since they can share part of the funding burden with the central bank while still maintaining full control over loan assessment and recovery efforts, turning a high-potential industry into a more active engine of growth for the wider economy. Over time, stronger shipbuilding finance can help diversify exports further.
