Bangladesh Shilpa Rin Sangstha, a specialized credit agency was established on October 31, 1972, by Presidential Order No 128 of 1972 with the vesting of erstwhile ICP, PICIC, and NIT Ltd. located in Bangladesh.
It provides credit facilities to help establish new industries and for the modernization and balancing of existing industries. In certain cases, it participates in the equity of bigger projects selected for finance.
Bangladesh Shilpa Rin Sangstha (BSRS)
It provides medium and long terms credit facilities mainly in the private sector and to any projects of the public sector. The function of Shilpa Rin Sangstha is to broaden the base of the capital market.
To contribute to the development of the capital market, Bangladesh Shilpa Rin Sangstha (BSRS) participates in the trading of securities in the Dhaka Stock Exchange as its member in addition to participation in the primary market.
BSRS (Bangladesh Shilpa Rin Sangstha) also guarantees, under certain conditions, deferred payments of machinery imported from aboard under Suppliers Credit and provides a guarantee, counter-guarantee for loans, debits, credits, the performance of contract, and financing arrangement with foreign lending agencies as well as with local banks and financial institutions.
It keeps constant vigilance over the industries after granting of the loan. Its function is to create down assets and increase productive capacity.
It disburses loan, not in one installment but gradually as assets are acquired and the project passes from one stage to another. Besides, BSRS also assists in helping borrows to choose the right type of machinery at a competitive price, conducts market surveys, undertakes industrial promotional activities, and provides professional counseling to entrepreneurs regarding investments.
The bulk loan depends upon the nature of the project, the integrity and experience of the promoters, and the estimated expenditure involve. The loans are given either in foreign currency or local currency or both, as the case may be.
BSRS (Bangladesh Shilpa Rin Sangstha) prefers giving loans to those industries which are based on local raw materials, fall in the priority fixed under the Investment Schedule, and which, if developed, would affect savings in foreign exchange both by reducing imports and increasing country’s exports. BSRS also started a commercial banking operation from May 1997.
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