Regulatory Alerts2022-07-21
Added
CGD Circular No. 01: Formation of 'Credit Guarantee Department'
The document instructs all scheduled banks and financial institutions in Bangladesh to direct all communications and reporting regarding credit guarantee schemes to the newly formed Credit Guarantee Department (CGD) at the Central Bank of Bangladesh. This directive follows the separation of the Credit Guarantee Scheme Unit from the SME & Special Programs Department on July 4, 2022, to expand services and support poverty alleviation. The circular lists eleven specific previous circulars and letters whose instructions must now be followed through the CGD. These instructions became effective immediately upon issuance on July 20, 2022.
Bangladesh Bank (Central Bank of Bangladesh) Head Office Motijheel, Dhaka-1000 Bangladesh.
Ref: C.G.D.Circular No. 01 Credit Guarantee Department CGD Circular No. 01 20 July 2022 Date: ---------------- 05 Shrabon 1429
To: Managing Director / Chief Executive Officer All Scheduled Banks and Financial Institutions operating in Bangladesh.
Dear Sir,
Regarding the formation of the 'Credit Guarantee Department'.
In order to further expand and efficiently operate the Credit Guarantee facility, thereby creating employment opportunities for the deprived population of the country, alleviating poverty, and achieving the Sustainable Development Goals, the 'Credit Guarantee Scheme Unit' was separated from the SME & Special Programs Department and a new department named 'Credit Guarantee Department' (hereinafter referred to as CGD) was formed on July 04, 2022. Consequently, all ongoing credit guarantee-related activities are now being conducted by the 'Credit Guarantee Department'.
- In this context, you are hereby instructed to direct all types of communications and reporting, along with reports, to the Director, Credit Guarantee Department, Bangladesh Bank, Head Office, Dhaka, in accordance with the instructions contained in the following circulars/circular letters regarding credit guarantees:
| S.No. | Subject of Circular/Circular Letter | Number of Circular/Circular Letter | Date of Issue |
|---|---|---|---|
| 1 | Regarding the launch of Credit Guarantee Scheme in the Cottage, Micro and Small (CMS) enterprise sector. | SME&SPD Circular No. 03 | 27/07/2020 |
| 2 | Regarding the revision of the Credit Guarantee Scheme. | SME&SPD Circular No. 04 | 03/11/2020 |
| 3 | Regarding the amendment of the revision of the Credit Guarantee Scheme. | SME&SPD Circular No. 02 | 31/01/2021 |
| 4 | Regarding the policy of the Credit Guarantee Scheme in the Cottage, Micro and Small (CMS) enterprise sector. | SME&SPD Circular No. 03 | 01/02/2021 |
| 5 | Regarding the policy of the Credit Guarantee Scheme in the Cottage, Micro and Small (CMS) enterprise sector. | SME&SPD Circular No. 05 | 09/05/2021 |
| 6 | Regarding the monthly statement of loans/investment accounts registered under the Credit Guarantee Scheme. | SME&SPD Circular Letter No. 06 | 13/06/2021 |
| 7 | Regarding the signing of participation agreements (Participation Agreement) between banks and financial institutions for the Credit Guarantee Scheme in the Cottage, Micro and Small (CMS) enterprise sector. | SME&SPD Circular Letter No. 08 | 12/07/2021 |
| 8 | Regarding the policy of the Credit Guarantee Scheme in the Cottage, Micro and Small (CMS) enterprise sector. | SME&SPD Circular No. 07 | 05/08/2021 |
| 9 | Regarding the policy of the Credit Guarantee Scheme in the Cottage, Micro and Small (CMS) enterprise sector. | SME&SPD Circular Letter No. 10 | 14/12/2021 |
| 10 | Regarding the re-determination of credit limits under the 'Credit Guarantee Scheme' in the Cottage, Micro and Small (CMS) enterprise sector. | SME&SPD Circular Letter No. 11 | 30/12/2021 |
| 11 | Regarding credit guarantee facilities for primary/landless farmers, low-income professionals, school banking account holders, and small business owners for accounts of 10/50/100 Taka. | SME&SPD Circular No. 01 | 23/01/2022 |
These instructions shall take immediate effect.
Yours faithfully,
(Manoj Kumar Howlader) Director (CGD) Phone: 9530221