• Sunday, May 09, 2021
  • Last Update : 11:22 pm

Lenders get until June to disburse stimulus for CMSMEs

  • Published at 05:47 pm April 12th, 2021
SME weaving loom
Syed Zakir Hossain/Dhaka Tribune

This is the fourth extension issued by the central bank

Banks and non-bank financial institutions (NBFIs) now have three months, until June 30 this year to execute the stimulus package for cottage, micro, small and medium enterprises (CMSMEs).

Bangladesh Bank on Monday extended the deadline as banks and NBFIs were not able to complete the implementation process of the stimulus fund within the previous deadline, which was March 31 this year.

Until the previous deadline, banks and NBFIs disbursed 72.31% of the total Tk20,000 crore, said the BB notice issued on the day.

This is the fourth extension issued by the central bank for implementing the stimulus package disbursement.

Some banks and financial institutions have been able to disburse loans as per the target, while some failed, said a top official of the central bank.

He also said that the failure of those banks and financial institutions has hampered the expansion of desired production and services in the CMSME sector.

Earlier on July 2 last year, the central bank asked all banks to take effective measures for implementing the stimulus packages including the CMSME sector within August of the same year.

On April 13 last year, 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.

Facebook 53
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail