SMEs are an important arm of economic growth Mehedi Hasan/Dhaka TribuneBB tells banks to provide minimum 15% loans to villageBanks will have to disburse a minimum of 15% loans of its yearly target to businesses in villages and marginal areas from the Tk20,000 crore stimulus package for the cottage, micro, small and medium enterprise (CMSME) sector, says the central bank. Under the stimulus package, the commercial banks will provide loans to the CMSME sector companies as working capital from their own fund on the basis of banker-customer relationship. The Bangladesh Bank on yesterday published guidelines stipulating the terms and conditions, which said loan defaulting people and businesses will not be eligible for the scheme. Besides, if any loan taken by a business has been rescheduled over three times, it would not be eligible to get any loans from the package, it added. Banks will have to provide 70% loans of their yearly target to the cottage, micro and small enterprises while rest 30% loans should be provided to the medium enterprises, it said.

Source: Dhaka Tribune April 13, 2020 14:39 UTC