Dhaka, Bangladesh (BBN)– Bangladesh’s scheduled banks and non-banking financial institutions (NBFIs) disbursed only BDT 15 billion of the stimulus package until July 30 for cottage, micro, small and medium enterprise (CMSME) sector.
The disbursed amount is just 7.50 per cent of total BDT 200 billion financial support meant for the CMSME to help the sector weather the adverse impact of the Covid-19 pandemic.
Loans amounting to BDT 27.50 billion were sanctioned to more than 8000 small enterprises during the period, according to central bank’s statistics.
Senior bankers, however, said that some strict conditions, imposed by the BB on 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.
Under the existing policy, the banks and NBFIs can lend manufacturing and services 50 per cent and 30 per cent respectively while the remaining 20 per cent for trading purposes.
Rejecting the bankers’ allegations, a senior central banker said the central bank has included such conditions in line with the government’s desires.
“The government wants to create employment opportunities across the country by boosting manufacturing activities with the implementation of the package,” the BB official noted.
Let alone cottage and micro, only SMEs are creating employment for 7.8 million people directly and providing livelihood for 31.2 million in Bangladesh.
These also contribute 25 per cent to GDP (gross domestic product), according to Household Income and Expenditure Survey 2016, conducted by the state-run Bangladesh Bureau of Statistics (BBS).