BB to facilitate loan/investment in CMSME sector

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Bangladesh Bank (BB) has directed banks/financial institutions to supply special loan/investment facility to revive cottage, micro, and Small and Medium Enterprises (SMEs) which were affected financially due to the outbreak of Novel Coronavirus. The institutions have also been urged to disburse loans in the shortest possible time by adopting the easiest procedure possible in every steps from acquiring application to loan disbursement.

BB also directed to transfer all imposed/ imposable interest/ profit on all sorts of loans/investments facilitated between 01 April 2020 and 31 May 2020, to interest-free blocked accounts. The interest/profit transferred as blocked can't be acquired from the respective loan/investment recipient till further instruction and such interest/profit cannot be used in bank’s income book. Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) believes the business enterprise community will particularly be benefited from the facility. The central bank took the initiative following FBCCI's proposal regarding easy loan access by entrepreneurs in the CMSME sector.

As per the instruction, separate help desks will be set up in each branch of the bank/financial institutions to aid the entrepreneurs in order that information about school funding packages can be found easily. The institutions will form monitoring teams at their respective head offices to properly supervise loan/investment disbursement activities and inform the names, phone numbers, and e-mails of the entrepreneurs to the in-charges at the SME and Special Programmes Department. Besides, these were also instructed to get assistance from FBCCI and its own affiliates in selecting borrowers, disbursing loans, supervising lenders, and including personal, social, and group guarantees rather than collateral to avail the entrepreneurs while taking loan/investment benefits.

On April 5, Prime Minister (PM) Sheikh Hasina declared a financial assistance package of Tk 20,000 crore to introduce low-interest on working capital loan/investment facility through the bank operating system to retain the capacity of CMSME entrepreneurs influenced by the coronavirus and keep carefully the manpower working. In light of the PM’s announcement, FBCCI President Sheikh Fazle Fahim submitted a proposal to BB to help make the loan/investment disbursement process easier for the entrepreneurs of CMSME aswell. He also urged for a fairly easy usage of credit for all media outlets. Fahim assured that FBCCI would remain involved in the loan/investment process and would always make an effort to revive the economy by giving all possible assistance in the event of any problem.

He said, “Most of the CMSME entrepreneurs, entitled to have the existing capital loan/investment facility, have minimal infrastructures and relationship with bankers than those of others. Due to this fact, if these entrepreneurs were selected upon reviewing their basic standards, financial statements and ICRRS, many would neglect to meet required qualifications to avail the loans and investment benefits. Meanwhile, if the loan amount isn't determined and the demand isn't coordinated with it, we will not get desired results.”

The PM has recently allocated Tk 70,000 crore as refinancing for the smooth implementation of loan/investment and other facilities under various financial assistance packages, announced so far, to keep economic activities uninterrupted through the Coronavirus pandemic, he added.

The FBCCI president expressed gratitude to the PM and Finance Minister AHM Mostafa Kamal for the initiative.

The FBCCI proposal included that CMSME organisations such as trade, factory, shop, dealer, retailer, distributor, pharmacy, restaurant, petrol pump, travel/tourism/resort, transport, fashion house, beauty parlour, women entrepreneur, saloon, small cottage and middle industry could avail the facility if recommended by the respective district chamber. Necessary recovery time may also be supplied by the association.

Fahim called after the individuals and organisations to inform FBCCI if any bank or lender will not provide proper assist with them The FBCCI may also monitor the implementation of these guidelines, he said.

Meanwhile, a demand was also raised to facilitate media, newspapers, TV, trucks, cargo, launches, and backward exports, with the loan/investment facility on the basis of salary statements and as per the advice of the association concerned.
Source: https://thefinancialexpress.com.bd

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