'The loan disbursement activities of banks and NBFIs to the CMSME sector under the stimulus package are not yet satisfactory'
The Bangladesh Bank (BB) on Monday asked banks and non-bank financial institutions (NBFIs) for quick loan disbursement in the cottage, micro, small and medium enterprises (CMSME) sector.
“The loan disbursement activities of banks and NBFIs to the CMSME sector under the stimulus package are not yet satisfactory,” said a BB circular issued on the day.
Supervision on loan disbursement activities under the stimulus package should be strengthened, it added.
Banks would have to submit loan disbursement reports to the central bank’s SME and Special Programs Department on a bi-monthly basis instead of on a monthly basis to strengthen supervision of loan disbursement activities, the circular elaborated.
On April 5, Prime Minister Sheikh Hasina unveiled a Tk20,000 crore bailout package for the CMSME sector with an intent to help the stakeholders overcome the Covid-19 fallout, setting an interest rate ceiling at 9%.
Of the 9% interest, the government will bear 5% as subsidy and the remaining 4% is to be borne by borrowers.
Bangladesh Bank formed a Tk10,000cr revolving refinancing scheme to help implement the Tk20,000 crore stimulus package. Banks and non-bank financial institutions are eligible for the fund from the central bank’s refinance scheme at 4% interest rate.