BUILD, a business think tank, on Tuesday appreciated the central bank recent moves for extending disbursement timeline of stimulus package for CSMEs sector.
Bangladesh Bank issued a circular on Sunday extending time for disbursement of the support fund for the small business as most of the banks and FIs have yet to meet targets.Prime Minister Sheikh Hasina announced the stimulus worth of Tk 200 billion for the cottage, micro, small and medium enterprises (CSME).
In a statement, the businesses mentioned Banks and FIs have disbursed Tk 108.25 billion till December 31, 2020 which is 54.13 percent of the total stimulus for CSMEs.
Bangladesh Bank has taken this issue seriously and extended its time up to 31 March 2021. The circular of Bangladesh Bank also asked the schedule banks that have yet to distribute their stipulated amount to prepare a time bound monthly action plan and submit it to Bangladesh Bank by 17 January 2021 so that the disbursement plan can be implemented.
On behalf of the entrepreneurs, Build requested Bangladesh Bank to extend the time for disbursement of the stimulus package of CMSMEs on 28 December 2020.
It is evident that CMS enterprises were eager to see their extension for loan payment installment beyond December 2020 to avoid the risk of receiving tag of loan defaulters. In this respect the circular could have some directives so that they can sustain COVID-19 situation and continue their business. BUILD hails Bangladesh Bank to take this timely measure.
It is also seen that some banks have fully implemented their target while some are a bit behind. We would like to say that the well-performed banks have experience in providing loans to CMSMEs. Their target can be increased so that more loans can be provided to the CMSMEs of the country in time.From the statement it is seen that disbursement for women entrepreneurs (WE) has increased about 37 percent in December from the earlier month which is a good sign. It seems that disbursement for WE has been increasing slowly. Considering this issue there could be some further extension of funds for WE.