Cinema hall owners will get Tk 1,000 crore long-term soft loans under the refinancing scheme of Bangladesh Bank to construct modern cinema halls and also renovate the old ones.

Under the scheme, cinema hall owners will get term loans at low interest of 5 percent , said a Bangladesh Bank circular on Sunday.

It mentioned that the scheme was introduced in order to bring back the glory of Bangladeshi cinema by constructing modern cinema halls and also renovating the old ones.

As per the circular, hall owners will have to apply to banks for the loans and banks will distribute loans examining the project’s financing viability. The loan amount will not cross Tk 5 crore limit for each cinema hall in any case.

The repayment period of the loans will be total 8 years including one year grace period having a provision of three monthly equal installment of payback facility.

Of the total fund of Tk 1,000 crore, Tk 500 crore will be distributed in the first phase while their remaining Tk 500 crore in the second phase.

Financing banks will take the fund from the central bank at 1.5 percent interest and distribute the loans at 5 percent interest in the metropolitan areas and 4.5 percent interest outside the metropolitan areas.

The circular mentioned that once there were 1600 cinema halls across the country. But the number of cinema halls is decreasing for various impediments.

It said Prime Minister Sheikh Hasina declared the cinema sector as industry on April 3 in 2012 to create renaissance among the people involved in the sector by enhancing their skills through modern technology and also to an investment-friendly atmosphere.