Regulatory Alerts2020-09-27
Added · Updated
FID Circular Letter No. 01: Refinance Scheme for the COVID-19 affected low income professionals, farmers and holders of small and marginal businesses
The Financial Inclusion Department amends Paragraph 9 of FID Circular No. 01/2020 to redefine the maximum refinance amount a bank can obtain from a single microfinance institution. The new limit is set at the lower of 30% of the institution's average loan/investment disbursed over the previous three years or 5% of the total scheme fund (BDT 300 crore). This amendment applies to all scheduled banks operating in Bangladesh and takes effect immediately.
Bangladesh Bank Head Office Motijheel, Dhaka-1000. Ref. No. 16.00.0000.048.07.001.20-136 Financial Inclusion Department FID Circular Letter No. 01/2020 Date: To Managing Director / Chief Executive Officer All Scheduled Banks Operating in Bangladesh Dear Sir, Re: Refinance Scheme for the COVID-19 affected low income professionals, farmers and holders of small and marginal businesses, 2020. Reference is invited to FID Circular No. 01/2020 issued on April 20, 2020, regarding the subject cited above. 2. Paragraph 9 of the aforementioned circular is hereby replaced with the following: 'The maximum refinance amount that any bank may obtain from any one microfinance institution shall be the lower of 30% of the average loans/investments disbursed by the said microfinance institution over the past three years or 5% of the total fund of the said Refinance Scheme (BDT 3,000 Crore).' 3. Furthermore, all other provisions of FID Circular No. 01/2020 shall remain unchanged. These instructions are to be implemented immediately. Yours faithfully, (Md. Anowarul Islam) General Manager Phone: 02-9530543 Email: fid@bb.org.bd 12 Ashwin 1427 27 September 2020