DCCI calls for increased credit flow to CMSMEs

Dhaka Chamber of Commerce and Industry (DCCI) has called upon the authorities to take measures to increase credit flow to the Cottage, Micro, Small and Medium Enterprises (CMSMEs), reports BSS.
A delegation of DCCI Board of Directors led by its President Ashraf Ahmed made the call during a meeting with Bangladesh Bank (BB) Governor Dr Ahsan H Mansur at the bank's headquarters in the city on Tuesday, said a press release.
At the meeting, Dr Ahsan H Mansur said if the existing inflation can be brought down to a tolerable level within the next 6-7 months, reduction of policy interest rate and other interest rates will be possible.
In this connection, he said deposit collection in the banking sector is crucial now and its growth should be reached to double digit.
The Governor emphasized on making credit guarantee facilities for SMEs more operational.
He also stressed the need for limiting the rate of government borrowing to increase the flow of credit to the private sector. Improving payment history and credibility will help get foreign trade credit for the entrepreneurs, he added.
The Governor also said that a banking commission will be formed soon, based on which the necessary roadmap will be formulated to bring stability to the financial sector.
He further advised new investors to invest in special economic zones to get all facilities together.
In his speech, Ashraf Ahmed said that if the interest rate increases, that may slow down the flow of credit, especially for CMSMEs.
"In terms of SME financing, Bangladesh Bank has several schemes, which can be accelerated to facilitate the financing process for this sector," he added.
Dhaka Chamber president suggested facilitating foreign trade credit processing and foreign loan processing and increasing credit flow to the banks.
He also requested the central bank to take initiative to reduce pressure of interest rates on loans to CMSMEs.
Emphasizing the need for keeping inflation under control, Ashraf Ahmed pointed out that inflation not only increases the cost of common people but also increases the operational costs of businesses.
About bad loans, he said if bad loans of the banks come down, the interest rate can also be reduced subsequently.
He welcomed the central bank's initiative to bring stability to country's financial sector.
The Dhaka Chamber President said that for the development of the CMSME sector, assistance is required to deal with the pressure of interest rate rise and maintain the flow of credit.