Dhaka, Aug. 30 -- Bangladesh Bank (BB) on Sunday reduced the interest rate on its Tk 3,000-crore refinancing fund for the formation of a specialized agro-based economic hub in northern Bangladesh.

According to a circular issued by the Agricultural Credit Department-1 of Bangladesh Bank, participating banks will now receive refinancing facilities from the central bank at an interest rate of 3.0 percent, down from previous levels, while the maximum interest or profit rate at the customer level has been capped at 7 percent.

For Shariah-based financing, the profit rate at the customer level cannot exceed 7 percent under any circumstances, and interest or profit must be calculated on a reducing balance method.

The Tk 3,000-crore refinancing...