Despite Bangladesh Bank's announcement of a Tk 62,000 crore stimulus package to reopen closed factories, generate new employment, and revitalize the economy, progress in loan disbursement remains sluggish.
Over the past five months, entrepreneurs have received only Tk561 crore out of the Tk20,000 crore allocated for closed industrial and service sectors.
This means less than 3% of the sector's total allocation has been disbursed, raising doubts about achieving the goals of reopening closed factories and creating jobs.
According to Bangladesh Bank data, loan disbursements worth another Tk929.50 crore for closed industrial and service sectors are currently being processed.
As a result, a major portion of the allocation remains beyond the reach of entrepreneurs.
Across the entire stimulus package, a total of Tk11,959.82 crore has been disbursed so far from 15 separate funds.
Additionally, loan processing for another Tk2,560 crore is underway. Combining both disbursed and in-process funds, the total comes to Tk14,519.79 crore—meaning less than one-fifth of the total Tk62,000 crore package has been distributed.
Under this package, the maximum interest rate on loans is set at 7%, with the remaining interest subsidized by the government.
The initiative aims to create employment for 2.5 million people.
Data from Bangladesh Bank shows that the highest amount, Tk6,917 crore, was disbursed from the pre-shipment credit refinance scheme.
A special fund for cottage and micro-entrepreneurs disbursed Tk 2,500 crore, while approximately Tk908 crore was disbursed as working capital for small and medium enterprises (SMEs).
Furthermore, Tk500 crore was disbursed to the creative economy, Tk293 crore to agricultural and rural economic activities, and Tk200 crore to foreign employment generation.
Business owners and bankers point to mutual constraints for the slow pace of loan disbursement.
Businesspersons allege that while loans are urgently needed to restart closed factories, banks are reluctant to extend financing.
Securing new loans has become difficult due to issues surrounding collateral and previous loan defaults.
However, they argue that once factories reopen, production and sales will increase, gradually enabling them to repay the loans.
Additionally, per a July 29 directive from Bangladesh Bank, applicants must withdraw ongoing lawsuits against the government, Bangladesh Bank, or the relevant financial institution before receiving special policy support.
Entrepreneurs expressed uncertainty, as there is no guarantee of obtaining a loan even after withdrawing their cases.
On the other hand, bankers state that amid high non-performing loan (NPL) pressures, they must carefully verify the applicant's financial standing, collateral, and the feasibility of restarting the factory before issuing new loans. This naturally prolongs the approval process.
Business owners have demanded relaxed loan conditions, faster application processing, and priority for factories with high potential for production and job creation.
They also suggested that banks provide written in-principle approval before requiring the withdrawal of pending lawsuits.
