'Bangladesh Bank issued a SMESPD circular letter-1 on January 3 mentioning the extension of time for the Disbursement of BDT 200 billion Stimulus Package for CMSMEsfor those banks and FIs that have not met targets. This is very timely and supportive for the small, cottage and micro entrepreneurs', said a statement issues by BUILD on Tuesday.
The statement mentioned that "we are aware that total disbursement of the stimulus package(SP) through both Banks and FIs is BDT 10825.28 croretill December 31, 2020 which is 54.13% as per the statement of Bangladesh Bank, where 63% of the approved amount has been disbursed'.
It said that Bangladesh Bank has taken this issue seriously and extended its time upto 31 March 2021. The circular of Bangladesh Bank also asked the schedule banks that hare yet to distribute their stipulated amount to prepare a time bound monthly action plan and submit it to Bangladesh Bank by 17 January 2021 so that the disbursement plan can be implemented.
BUILD worked for the Stimulus packages since its initiation and put forward several recommendations through it Financial Sector Development Working Committee Meeting for extension and effective use of the Stimulus Packages, especially for CMS segment.
On behalf of the entrepreneurs, BUILD requested Bangladesh Bank to extend the time for disbursement of the stimulus package of CMSMEs on 28 December 2020.
It is evident that CMS enterprises were eager to see their extension for loan payment installment beyond December 2020 to avoid the risk of receiving tag of loan defaulters. In this respect the circular could have some directives so that they can sustain COVID-19 situation and continue their business. BUILD hails Bangladesh Bank to take this timely measure.
It is also seen that some banks have fully implemented their target while some are a bit behind. We would like to say that the well-performed banks have experience in providing loans to CMSMEs. Their target can be increased so that more loans can be provided to the CMSMEs of the country in time.
From the statement it is seen that disbursement for women entrepreneurs (WE) has increased about 37% in December from the earlier month which is a good sign. It seems that disbursement for WE has been increasing slowly. Considering this issue there could be some further extension of funds for WE.
