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.
