Six weak banks have been given Tk 22,500 crore printing new notes, said Bangladesh Bank Governor Dr Ahsan H Mansur.

He said the money would be withdrawn through issuance of bonds. "We`ll have a tight policy. We`ll give in one hand and withdraw through other. It`ll not create any instability in the market."

Bangladesh Bank Governor Dr Ahsan H Mansur was addressing a press conference at the central bank on Thursday (November 28).

The governor said: "We`re providing liquidity support to the weak banks. It is being given for the protection of depositors. Tk 22,500 crore have already been disbursed. However, we have been able to come out of the instable situation that prevailed in the branches. All the customers will be able to draw money from the branches on Sunday as per their requirements."

Addressing the depositors, the governor said, "I assure the depositors of the safety of their money. Your money will remain safe whichever the banks you have kept your deposits. It will have no problem. You draw money as much as you require. There is no problem with the money of the depositors. We also have no headache about it. Depositors` money will remain safe. However, no bank will be able to sustain if the depositors try to draw money altogether."

Regarding the printing of new banknotes, the governor said: "We have supplied money for the protection of depositors. It will not lead to flow of money in the market and inflation will also not increase, because we are giving money in one hand and withdrawing that money through the issuance of bonds on the other."

Dr Ahsan H Mansur also said the monetary policy would remain tight as usual. "We`ll not destabilise the market. Customers will be able to draw their money visiting all the branches of six banks. However, there will be no money if all the customers intend to draw money at a time. We want to say again that customers should not go to the bank branches to draw Tk 100 crore altogether."

Following the fall of Sheikh Hasina-led government, the interim government issued a circular appointing Dr Ahsan H Mansur as the 13th governor on August 13 last. After taking over responsibility, he said no liquidity support would be provided to any of the weak and problematic banks by printing money.

He said the liquidity support would be provided to weak banks through inter-banks, and the central bank will act as a guarantor there. It will require almost Tk 2 lakh crore in resolving the liquidity crisis of the weak banks. It will contribute to the inflationary pressure manifold.