Bangladesh Bank will manage the fund and disburse money among entrepreneurs through commercial banks for the development of port, power and telecommunications network.

WB Vice President (Financial Sector Network) Cesare Calari said this at a meeting with the managing directors of commercial banks in Dhaka yesterday.

The meeting was arranged on the sidelines of a two-day international workshop on 'Infrastructure Financing in Bangladesh' that began in Dhaka Sheraton Hotel yesterday.

However, the size of the fund and its operational characteristics will be finalised later in consultation with the government, Calari told the meeting.

The bank officials expressed their interest in infrastructure financing. But the infrastructure development financing is hindered due to frequent change in the government fiscal policy, they told the WB vice president.

A few days ago, the bank officials said, the government took an expansionary economic policy. The commercial banks were then persuaded to cut their interest rates and extend credit activities. But within a few months the government took an opposite monetary stance and introduced a tight monetary policy, the officials went on.

Following the government policy, the BB increased statutory liquidity requirement (SLR) and cash reserve requirement (CRR). Due to the move, around Tk 3,000 crore prospective investment fund of the commercial banks is feared to get blocked, they added.

They also said the banks will have to be cautious now in new lending projects due to the enhanced SLR.

They stressed on a long-term fiscal policy for infrastructure financing and urged the WB official to raise the issue to the government.

CEOs of different commercial banks attended the meeting, which was presided over by Association of Bankers Bangladesh President M Aminuzzaman.