News Desk :
Bangladesh Bank (BB) has announced a refinancing scheme of Tk 25000 crore for cottage, micro, small and medium entrepreneurs.
Under this scheme, banks and financial institutions can disburse loans through their own branches, sub-branches, agent banking, and mobile financial services (MFS), reports UNB.
A BB circular in this regard was issued on Tuesday and sent to the top executives of banks and financial institutions.
The circular stated that if it is possible to create opportunities to get money on easy terms for the entrepreneurs engaged in cottage, micro, small and medium industries or CMSME sector, it will accelerate the economic growth.
The title of the scheme is ‘Refinance Scheme against Term Loan in CMSME Sector’ will be supported by funds from own sources of the central bank.
The funds will be increased if necessary. Initially, the duration of the scheme will be three years.
Meanwhile, the implementation was 76.93 per cent in FY21 and the implementation rate dropped even lower in FY22 as it was 57.25 per cent in the first 11 months of FY22.
Though two refinance schemes Tk 20,000 crore each launched by the BB, banks disbursed Tk 15,386.72 crore in FY21 and the implementation reached Tk 11,423.54 crore in July-May of FY22.
Banks could not complete the implementation of CMSMEs’ schemes, but banks managed to implement other schemes in full
meant for the exporters and large-scale industries.
Under the previous two refinance schemes, the beneficiaries of the loans paid 4 per cent interest while the banks received another 5 per cent interest from the government as part of stimulus packages to recover from coronavirus-induced economic shock.
As there would be no government subsidy for the newly introduced refinance scheme, the CMSMEs will be responsible to pay the entire interest liability at the rate of 7 per cent.
The latest BB circular said that at least 75 per cent of the total fund has to be disbursed among cottage, micro and small entrepreneurs while highest 25 per cent can be disbursed among the medium entrepreneurs.
The banks will have to disburse 70 per cent of the fund to the productive and to the service sector while up to 30 per cent can be disbursed to the trading sector.
The loan repayment tenure has been set to highest five years including six months grace period.
