Tk 250b refinancing scheme for CMSME sector

The central bank has set up a new refinancing scheme worth Tk 250 billion to support funding for cottage, micro, small and medium enterprises (CMSME) across the country, officials said.
The central bank will provide the refinancing facility through eligible scheduled banks and non-banking financial institutions (NBFIs), aiming to develop the CMSME sector.
Under the scheme, lenders will receive the funds in the form of term loan at an interest rate of 2.0 per cent from the central bank, while the end-users will get it at 7.0 per cent interest rate, according to a notification issued by the Bangladesh Bank (BB) on Tuesday.
"The scheme is aimed at enhancing the production of import substitutes through promoting new entrepreneurs across the country," Abu Farah Md. Nasser, deputy governor of the BB, told the FE.
It will also help create employment opportunities by enhancing investment, particularly in the cottage, micro and small enterprises in the country, he added.
The banks and NBFIs are allowed to lend a minimum of 70 per cent of the fund for manufacturing and services sectors and the remaining 30 per cent for trading purpose, the BB notification said.
On the other hand, the lenders will have to provide a minimum of 75 per cent loans to cottage, micro and small entrepreneurs and the remaining 25 per cent will be provided to medium enterprises.
The money for the scheme will come from BB's own fund and the tenure of scheme has been set at three years initially, according to the officials.

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