Bangladesh Bank asks banks to complete loan disbursement by June

Bangladesh Bank has requested banks to speed up the disbursement of stimulus funds among businesses in the small and medium enterprise sector to meet the disbursement target by June.

The central bank has asked senior bank executives to ensure full support and strengthen monitoring of stimulus loan disbursement for the CMME sector.

The central bank set the deadline after noting the slow disbursement of stimulus loans to CMSMEs in the last 8 months (July-February) of the 2021-22 financial year.

Md Serajul Islam, executive director and spokesperson of BB, told UNB on Sunday that a special unit of the central bank jointly with Sonali Bank is monitoring the disbursement of stimulus loans to CMSMEs.

In addition, major banks (selected to lead loan disbursement in specific districts) are working with other banks to expedite the disbursement of stimulus loans, he said.

The spokesperson said the central bank provides credit guarantee against all types of loans to entrepreneurs in the CMME sector.

The government has declared a Tk 20,000 crore stimulus loan scheme to help CMSMEs weather the financial shock due to the Covid-19 pandemic.

During the first phase, the loan disbursement rate was 77% of the target in eight months (July-February) during the last fiscal year.

In the second phase, banks disbursed loans of Tk 7,117,000,000 to enterprises in the CMME sector in the first eight months of the current fiscal year (July-February), representing 36.80% of the goal.

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