Bangladesh Bank has extended the deadline for execution of the stimulus package for the cottage, micro, small and medium enterprises (CMSMEs) by one month.
According to the central bank decision, the deadline for execution of the stimulus package for CMSMEs has now been set on November 30. The previous deadline was October 31.
The central bank extended the deadline as some Banks and non-bank financial institutions (NBFIs) failed to complete their disbursement within October 31, of this year.
“Some banks and financial institutions have been able to disburse loans as per the target while some have failed to achieve the target set by the central bank,” according to the BB circular issued on Sunday.
The BB said that the failure of some banks and financial institutions in this regard has hampered the expansion of desired production and services in the CMSME sector.
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Earlier on July 02, the central bank asked all banks to take effective measures for implementing the stimulus packages including the CMSME sector within August this year.
The banks have also been asked to implement the lion’s share of the stimulus packages within July and the remaining portion by August, this year.
On April 13, the BB, in line with the government’s announcement, issued guidelines on providing working capital facilities amounting to Tk20,000 crore to the CMSME sector affected by the coronavirus pandemic, setting the interest rate ceiling at 9%.
Of the 9% interest, the government will bear 5% as subsidy and the remaining 4% will be borne by borrowers.
But, banks and NBFIs have been lending slowly to businesses belonging to the cottage, micro, small and medium enterprise (CMSME) sector, it has been alleged.