BB sets up credit guarantee wing

Bangladesh Bank has set up a credit guarantee department by separating the credit guarantee scheme unit from the SME and special department to help further improve credit guarantee management facilities.

The credit guarantee scheme is aimed at creating employment for the marginal people of the country, alleviating poverty and achieving sustainable development goals.

The new department will help accelerate the achievement of the goals, said the BB in a circular on Thursday.

In April 2020, an incentive package of Tk 20,000 crore was announced for the cottage, micro, small and medium enterprises (CMSME) sector.

A credit guarantee scheme of Tk 2,000 crore has been launched to guarantee loans to banks so that potential small entrepreneurs are not deprived of loans from this package on the lack of collateral.