Loan ceiling for coronavirus-affected CMSME to be raised

The government is going to raise the loan ceiling for the country’s micro and small traders from the Covid-19 incentive package, an official said.

Bangladesh Bank (BB) has urged the Finance Division to raise the amount of funds from 20 percent to 30 percent for the traders of Cottage, Micro, Small and Medium Enterprises affected by the deadly coronavirus pandemic since March of this year.

General Manager of BB, Humaira Ara Shikha sent a letter to the Senior Secretary of Ministry of Finance Abdur Rouf Talukder on Monday.

According to letter, BB announced disbursement target of the working capital loan of Taka 20,000 crore till August 30 and later extended the same up to September 31. 2020. But the amount of fund disbursed till September 30, 2020 stood at Taka 5,882 crore which is 29.41% of the total amount Taka 20,000 crore introduced by BB on April 7. 

The working capital loan for the affected small and medium industries is being sanctioned at 9.0 percent interest out of which the entity will bear 4.0 percent and the remaining 5.0 percent will be subsidised by the government.

On September 22, a meeting was held for the extension of time and fund for small and medium term businesses affected by coronavirus.

Sultana Akter, a small cloth businesswoman said the banks are unable to provide loan for her hard hit trading business due to Coronavirus pandemic. She also said that the people are not receiving incentive loan from banks due to different reasons.

Advisor of International Monetary Fund (IMF), Dr Reza Kibria said that the government has allowed to provide loan to all businessmen affected by the Covid-19 pandemic.

Coronavirus pandemic will definitely continue for next two years as the government will need to provide incentives for the next several years, he said.

Finance Advisor of former caretaker government Dr AB Mirza Azizul Islam said the government will have to ensure flow of funds to revive small business across the country.

ask/wi