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Govt asks state-owned banks, DFIs to expedite loan disbursement

Incentive package for CMSME


September 27, 2020 00:00:00


FE DESK

The government has asked the state-owned commercial banks and development finance institutions (DFIs) to complete the disbursement of loans, declared under the Prime Minister-announced incentive package for CMSME (cottage, micro, small and medium enterprises) sector.

A directive was given by Mohd Asadul Islam, senior secretary of Financial Institutions of Ministry of Finance in a recent meeting, attended by chief executives of all managing directors of SoCBs and DFIs, according to a statement.

Senior officials of Bangladesh Bank were also present in the meeting held virtually.

The meeting put thrust on preparing ID card-based database for the affected entrepreneurs of CMSME during the pandemic.

Besides, recovery of default loans, bringing down the default loan rate to single digit and encouraging the good borrowers were highlighted in the meeting.

Mohd Asadul Islam said the banks have been able to disburse the majority portion of the package announced by the Prime Minister to stave off the losses of the economy due to Covid-19.

He, however, was unhappy on the developments in the CMSME sector and asked the banks to expedite the loan disbursement process.

According to the latest information from the central bank, Sonali Bank disbursed 77.63 per cent, Janata Bank 93.47 per cent, Agrani Bank 66.66 per cent, Rupali Bank 37.13 per cent and Basic Bank 32 per cent of the total disbursement package.

According to Ataur Rahman Pradhan, managing director and CEO of Sonali Bank, lack of a data base of the entrepreneurs and frequent mortgage of same property against the loan are creating obstacles to disburse loan. He opposed the extension of re-rescheduling of loans under 2.0 per cent down payment.

Obaidullah Al-Masud, managing director and CEO of Rupali Bank Ltd said as the CMSME clients did not contact the bank due to Corona situation, the rate of disbursement of loan was not up to the mark.

Managing directors of Agrani Bank, Janata Bank, Basic Bank, Bangladesh Krishi Bank, RAKUB, Ansar-VDP Unnayan Bank and Karmasangsthan Bank also attended.


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