The finance division on Wednesday said that it had provided a sovereign guarantee on Tk 3000 crore loan from Bangladesh Bank to the Investment Corporation of Bangladesh to overcome its liquidity shortage.
It made the acknowledgment in a letter to the BB, said officials of the finance division. The guarantee will remain valid for 18 months, added the official.
ICB, the investment arm of the government in stocks is facing a liquidity crunch because of incurring losses for its investments in risky shares. It has been reported that, in 2010, the company recorded a net profit of Tk436 crore with capital market investments totaling at Tk2,480 crore.
Until March 2024, the ICB reported a net loss of Tk 267 crore, despite its capital market investments growing to Tk 13,800 crore.
ICB›s total liabilities, including loans and deposits, stood at around Tk 15,000 crore compared to Tk 2,500 crore in 2010.
The company incurs losses as it has to pay interest against loans it had taken from banks to invest in the stock market.
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