Bangladesh Bank (BB) has
directed banks/financial institutions to provide special loan/investment
facility to revive cottage, micro, and Small and Medium Enterprises (SMEs) that
were affected financially due to the outbreak of Novel Coronavirus. The institutions
have also been urged to disburse loans in the shortest possible time by
adopting the simplest procedure possible in all steps from receiving
application to loan disbursement.
BB also directed to transfer
all imposed/ imposable interest/ profit on all types of loans/investments
facilitated between 01 April 2020 and 31 May 2020, to interest-free blocked
accounts. The interest/profit transferred as blocked cannot be acquired from the
respective loan/investment recipient till further instruction and such
interest/profit cannot be transferred to bank’s income book. Federation of
Bangladesh Chambers of Commerce and Industry (FBCCI) believes the business
community will particularly be benefited from the facility. The central bank
took the initiative following the FBCCI's proposal regarding easy loan access
by entrepreneurs in the CMSME sector.
As per the instruction,
separate help desks will be set up in each branch of the bank/financial
institutions to assist the entrepreneurs so that information about financial
aid packages can be found easily. The institutions will form monitoring teams
at their respective head offices to properly supervise loan/investment
disbursement activities and to inform the names, phone numbers, and e-mails of
the entrepreneurs to the in-charges at the SME and Special Programmes
Department. Besides, they were also instructed to receive assistance from FBCCI
and its affiliates in selecting borrowers, disbursing loans, supervising
lenders, and including personal, social, and group guarantees instead of
collateral to avail the entrepreneurs while taking loan/investment benefits.
On April 5, Prime Minister
(PM) Sheikh Hasina declared a financial assistance package of Tk 20,000 crore
to introduce low-interest on working capital loan/investment facility through
the banking system to retain the capacity of CMSME entrepreneurs affected by
the coronavirus and to keep the manpower working. In light of the PM’s
announcement, FBCCI President Sheikh Fazle Fahim submitted a proposal to BB to
make the loan/investment disbursement process easier for the entrepreneurs of
CMSME as well. He also urged for an easy access to credit for all media
outlets. Fahim assured that FBCCI would remain involved in the loan/investment
process and would always strive to revive the economy by providing all possible
assistance in case of any problem.
He said, “Most of the CMSME
entrepreneurs, entitled to have the current capital loan/investment facility,
have minimal infrastructures and relationship with bankers than those of the
others. As a result, if these entrepreneurs were selected upon reviewing their
basic standards, financial statements and ICRRS, many would fail to meet
required qualifications to avail the loans and investment benefits. Meanwhile,
if the loan amount is not determined and the demand is not coordinated with it,
we will not get desired results.”
The PM has already allocated
Tk 70,000 crore as refinancing for the smooth implementation of loan/investment
and other facilities under various financial assistance packages, announced so
far, to keep economic activities uninterrupted during the Coronavirus pandemic,
he added.
The FBCCI president expressed
gratitude to the PM and Finance Minister AHM Mostafa Kamal for the initiative.
The FBCCI proposal included
that CMSME organisations such as trade, factory, shop, dealer, retailer,
distributor, pharmacy, restaurant, petrol pump, travel/tourism/resort,
transport, fashion house, beauty parlour, women entrepreneur, saloon, small
cottage and middle industry could avail the facility if recommended by the
respective district chamber. Necessary recovery time will also be provided by
the association.
Fahim called upon the
individuals and organisations to inform FBCCI if any bank or financial
institution does not provide proper assistance to them The FBCCI will also
monitor the implementation of these guidelines, he said.
Meanwhile, a demand was also
raised to facilitate media, newspapers, TV, trucks, cargo, launches, and
backward exports, with the loan/investment facility on the basis of salary
statements and as per the advice of the association concerned.
Source : Financial Express
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