The central bank is set to ask the banks and non-banking financial institutions (NBFIs) for faster implementation of the stimulus packages particularly the one for the CMSMEs to speed up recovery of the pandemic-hit economy.
The instruction will be given at an online meeting with the top executives of 16 banks and four NBFIs scheduled to be held today (Monday), with Bangladesh Bank (BB) Governor Fazle Kabir in the chair, officials said.
"We'll ask the banks and NBFIs to expedite execution of the stimulus package for the cottage, micro, small and medium enterprises (CMSMEs) sector to help revamp the economy from the adversity of the ongoing Covid-19 pandemic," a senior official at the BB told the FE on Sunday.
The banks and NBFIs, which have loan disbursement targets of Tk 500 million and more, have been selected to participate the review meeting, according to the official.
The BB's latest move came against the backdrop of slower progress in loan disbursement under the financial package for the CMSMEs sector until July 30. The banks and NBFIs disbursed only Tk 15 billion of the stimulus package by then.
The disbursed amount is just 7.50 per cent of the total Tk 200 billion financial support for the sector. The support is to help the CMSMEs sector to offset the adverse impact of the Covid-19 pandemic.
Loans amounting to Tk 27.50 billion were sanctioned for more than 8,000 CMSMEs during the period, according to the central bank's statistics.
Senior bankers earlier said that some strict conditions imposed by the BB in the policy as well as higher operational costs than those of large industrial and service sector loans are mainly responsible for the slower disbursement of such loans.
Earlier on July 02, the BB governor met top bosses of 23 banks, which have loan disbursement targets of Tk 3.0 billion and above, set by the central bank earlier, for the same purpose.
Talking to the FE, Tariqul Islam Chowdhury, managing Director (MD) and chief executive officer (CEO) of South Bangla Agriculture and Commerce (SBAC) Bank Limited, said that his bank has already taken effective measures to expedite the disbursement of loans under the package in the coming days.
"Our all branches have already asked to gear up customer selection process considering their track records to boost loans disbursement under the package," the CEO said, replying to a query.
The SBAC Bank has already disbursed Tk 80 million under the package against the sanction of loans amounting to Tk 220 million.
The BB has already formed a Tk100 billion revolving refinancing scheme to help banks and NBFIs implement the package for the CMSMEs sector.
In April, the central bank issued a guideline for providing working capital facilities amounting to Tk 200 billion in line with the government's announcement for the CMSMEs sector affected by the pandemic.
Prime Minister Sheikh Hasina has so far announced 19 stimulus packages worth Tk 1.03 trillion to offset the impacts of the pandemic on various sectors.
The packages, which are 3.7 per cent of the country's gross domestic product (GDP), are now being executed under the supervision of the central bank and the finance ministry.
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