Banks get additional time to disburse loans among small enterprises
Bangladesh Bank yesterday extended the deadline for CMSME loan disbursements under its Tk 20,000 crore stimulus package before end of November as some lenders have didn't disburse the funds in time.
Local banks have up to now disbursed nearly 29 % of the package to beleaguered borrowers in the cottage, micro, small and medium enterprise (CMSME) sector.
The banking regulator instructed the country's lenders and non-bank financial institutions to fulfil their respective loan disbursement target within this month rather than the prior deadline of October, according to a BB notice.
The failure of lenders has generated an impediment in expanding the desired productions and services in the CMSME sector, the central bank said.
This has had a detrimental effect on the economy as well.
On April 13, Bangladesh Bank announced the stimulus package so that you can help the CMSME sector tackle the economic slowdown brought on by the ongoing coronavirus pandemic.
The working capital will be given at a 9 % interest. Of the interest, 4 per cent will be borne by the borrowers and 5 per cent by the federal government, according to a guideline.
A bank or a lender should be able to disburse a maximum 10 per cent of their outstanding loans as of December 31 this past year in the CMSME sector within a fiscal year beneath the package.
The central bank now provides half of the Tk 20,000 crore stimulus package announced by the government for the sector.
