DHAKA, April 14, 2020 (BSS) – Bangladesh Bank (BB) has issued a guideline
for the stimulus package of Taka 20,000 crore announced by the government for
the cottage, micro, small and medium enterprises (CMSME) to boost production
to overcome the possible COVID-19 impacts.
Under the package, the commercial banks and financial institutions will
provide loans or investment facilities to the CMSME sector as working capital
from their own fund on the basis of bank-client relations, according to a BB
circular issued on Monday.
Earlier, the government announced a set of stimulus packages with an
allocation of Taka 72,750 crore. Of the allocation, Taka 20,000 crore will be
provided to the CMSME sector as working capital.
As per the BB guideline, banks will have to disburse a minimum of 15
percent loans of its yearly target to businesses in villages and marginal
areas from the stimulus package.
The interest rate of this lending facility will be 9 percent and the
concerned industries and business organisations will pay 4 percent interest
of that loan, while the government will provide the remaining 5 percent as
subsidy, the circular said.
Banks will have to provide 70 percent loans of their yearly target to the
cottage, micro and small enterprises while the rest 30 percent loans should
be provided to the medium enterprises, it added.