Bangladesh, Oct. 13 -- State-owned Sonali Bank has lent Tk 70 billion to cash-strapped National Bank for three months at an interest rate of 10 per cent, with the Bangladesh Bank guaranteeing repayment.

Sonali Bank Managing Director Shawkat Ali Khan confirmed the deal on Tuesday, saying the funds would meet National Bank's immediate liquidity needs and support its recovery.

"The money is guaranteed by Bangladesh Bank. We hope it will meet National Bank's immediate liquidity needs and support the bank's recovery," he said, reports bdnews24.com.

The central bank has instructed National Bank to ensure depositors can withdraw money on demand from Oct 15.

It helped arrange the loan after National Bank sought assistance amid years of losse...