The facilities will be available only for lending from the bailout packages, the central bank’s debt management department said on Wednesday. The central bank currently has repo with one-day, 14-day and 28-day terms. Bangladesh Bank’s auction committee will fix the rate for the special repo, the debt management department said. The repo rate is the rate at which the central bank lends money to commercial banks in the event of any shortfall of funds. A repo rate cut is an incentive for banks to borrow funds from the central bank.

Source: bd News24 May 13, 2020 17:48 UTC