BRPD Circular No. 14: Access to Finance in the SME Sector

Ref: BRPD Circular No. 14 Banking Regulation and Policy Department Bangladesh Bank Head Office Dhaka. December 18, 2013 BRPD Circular No. 14 Date: ------------------- Poush 04, 1420

Managing Director / Chief Executive Officer All Scheduled Banks operating in Bangladesh.

Dear Sir,

Regarding the continuation of credit flow in the SME sector.

Due to the prevailing unstable situation in the country, business and commercial activities are being adversely affected. Consequently, normal business transactions are being disrupted. Specifically, small and medium industries are suffering more losses and are losing capacity. As a result, there is a growing concern that loans granted to the SME sector are gradually turning into non-performing loans.

Considering the important contribution of the SME sector to the development of the financial sector, it is necessary to maintain the flow of credit to affected borrowers in this sector. In this context, you are advised to consider the acceptance of down payments in the matter of rescheduling loans granted to the SME sector on the basis of bank-customer relations, to jointly determine the period for restructuring non-classified loans (Standard and SMA), to transfer loans to bad accounts if necessary, and to show a flexible attitude in determining interest rates. This facility will remain valid until June 30, 2014.

Kindly acknowledge receipt.

Yours faithfully,

(Md. Anowarul Islam) Deputy General Manager Phone: 9530094