Dhaka, June 7 -- Bangladesh Bank is exploring a bond-based financing mechanism to ensure long-term funding for housing loans, the central bank governor said Sunday, as the country's leading real estate body pressed for a dedicated housing fund and single-digit interest rates on home loans.

The assurance came during a courtesy call by a delegation of the Real Estate and Housing Association of Bangladesh (REHAB) on Bangladesh Bank Governor Md. Mostakur Rahman at the central bank's headquarters.

Led by REHAB President Dr. Ali Afzal, the meeting covered the current state, challenges and prospects of the housing sector, with REHAB leaders urging the establishment of a special housing fund and long-term mortgage facilities at single-digit int...