Bangladesh Bank has extended time to achieve the loan disbursement target of stimulus package of the cottage, micro, small and medium enterprises (CMSME) till June 30, 2021.
The target was disbursing Tk 200 billion loan to the sector under a stimulus package by March 31, 2021.But the central bank found that around 73 percent of the target was achieved within the stipulated time.
Considering the present situation, the central bank has extended the time emphasizing full implementation of the package. BB’s SME and Special Programmes department issued a circular in this regard with immediate effect on Monday.
It was sent to the top executives of all commercial banks and the non-bank financial institutions (NBFIs).
The central bank said despite all-out efforts, some banks and NBFIs could not achieve the target within the scheduled time of March 31. As a result, the CMSME sector has not achieved desired improvement of production and services so far.
A central bank official said both the banks and the NBFIs had committed to implementing the stimulus package within the stipulated time as part of recovery plan from the pandemic.
Under the stimulus package, the borrower will be borne 4.0 percent interest rate while the 5.0 percent of interest will be given by the government as subsidies.As a result, the banks and NBFIs will get 9.0 percent interest against the disbursed CMSME loan. The central bank provides half of Tk 200 billion stimulus package to banks as cash so that they (banks) could disburse loans smoothly.