DFIM Circular Letter No. 03: Fixation of General Provision for 'Standard' Loans/Leases of Small and Medium Enterprise (SME)

DFIM Circular Letter No. 03 Date: 29 April, 2013 16 Baisakh, 1420

To, The Chief Executive/Managing Director, All Financial Institutions operating in Bangladesh.

Dear Sir,

Fixation of General Provision against 'Standard' Loans/Leases of Small and Medium Enterprise (SME) under the 'Standard' Category.

Reference is invited to DFIM Circulars No. 08/2002, 03/2006, and 06/2006 regarding the classification and provision of term loans/leases, housing loans, and other assets provided by Financial Institutions.

In order to promote the development of micro and small enterprises and encourage women entrepreneurs through the SME loan/lease program of the SME & Special Programs Department of Bangladesh Bank, the general provision maintained against 'Standard' category loans/leases in the SME sector is hereby fixed at 0.25%, replacing the previously prescribed rate of 1%. Furthermore, all other instructions in DFIM Circulars No. 08/2002, 03/2006, and 06/2006 shall remain unchanged.

This directive shall take effect immediately.

Yours faithfully,

(A. K. M. Amzad Hossain) Deputy General Manager Phone: 9530249

DFIM: B: C. C. N. M. I. C. N. M. B. N. D. M. I. C. N. M. B. - N. D. M.

Financial Institutions and Market Department Bangladesh Bank Head Office Dhaka.