BB offers Tk 1,000cr to save lots of ailing cinemas
Bangladesh Bank yesterday declared a Tk 1,000 crore fund targeted at salvaging the country's ailing film theatres.
Existing owners of cinemas and new entrepreneurs can avail soft loans from the fund, according to a central lender notice.
The initiative comes from the banking regulator as the amount of operational cinemas slumped below 100 due to a drastic fall in the number of audiences.
In its notice, Bangladesh Bank explained there have been around 1,400 film theatres in the united states during the 90s. The number features been on the decline through the years due to different hurdles.
''There is a solid requirement to give a increase to the film sector so that persons can enjoy top quality entertainment,'' it said.
The owners of existing halls are certain to get finance from the fund to renovate and modernise their complexes. The central lender formed the fund in the sort of a refinance scheme.
Under the central bank programme, banks will need out funds at 1.5 % interest as the end-users of urban centers are certain to get it at 5 per cent interest.
However, clients outside urban centers may avail the fund at 4.5 % interest.
Borrowers will receive a repayment tenure of 8 years, including a good one-year grace period.
The central bank formed the scheme by method of using its own funds and will in the beginning disburse Tk 500 crore.
The rest will be given out subject to the correct utilisation of the disbursed fund in the first phase.
An owner of a cinema will need out a maximal finance of Tk 5 crore from the refinance scheme.
The fund can't be used in the kind of working capital to operate the halls.
Banks will need collateral and set a debt-equity ratio predicated on the bank-customer romantic relationship, in line with the central bank notice.
"This will be good as entrepreneurs can modernise their halls to attract audiences," stated Mian Alauddin, vice president of the Bangladesh Film Exhibitors Association.
Currently, there happen to be 300 movie theatres in the united states. Of them, 60-70 are operational.
The pandemic was an additional blow to the halls because they shed audiences further as a result of the prolonged restriction on public activity that lasted between March 15 to October 15, he added.