Regulatory Alerts2021-01-13
Added
SMEDP-2 Circular Letter No. 02: Enhancement of Refinance Ceiling and Working Capital Limit under SMEDP-2
The document increases the refinance ceiling for loans to micro, small, and cottage enterprises to BDT 30 million and to medium enterprises to BDT 50 million. It also revises the working capital limit, allowing refinancing of up to 100% of total disbursed loans for a one-year term, repayable in two equal half-yearly installments. These changes amend previous guidelines and take effect immediately.
SMEDP-2 Circular Letter No. 02 Date: 13 January 2021
To: Managing Director / Chief Executive Officer All Scheduled Banks and Financial Institutions.
Dear Sir,
Subject: Enhancement of Refinance Ceiling under the Refinance Fund for the Development of Cottage, Micro, Small and Medium Industries.
Reference is drawn to your attention to FID Circular No. 01/2017 issued on 15 November 2017 on the above-mentioned subject.
- In order to create employment opportunities for the rural population by increasing the flow of credit in the Cottage, Micro, Small and Medium Enterprises (CMSME) sector, the following decisions have been taken regarding the Refinance Fund operated jointly by the Government of the People's Republic of Bangladesh and the Asian Development Bank (ADB) under the Second Small and Medium Size Enterprise Development Project (SMEDP-2):
a) The refinance ceiling specified in paragraph 1.4 of FID Circular No. 01/2017 is increased to a maximum of BDT 30 (Thirty) Million for loans disbursed against cottage, micro, and small enterprise projects/institutions; and
b) In the case of working capital loans specified in paragraph 1.5 of FID Circular No. 01/2017, refinancing is allowed for up to 100% of the total disbursed loans (instead of 30%) for a term of one year, repayable in two equal half-yearly installments.
- In addition, all other conditions of FID Circular No. 01/2017 and SMEDP-2 Circular Letter No. 01/2020 shall remain unchanged.
This decision shall take effect immediately.
Yours faithfully,
(Md. Rezaul Karim Sarkar) Deputy General Manager and Sub-Project Director Phone: 9530751 50119
Bangladesh Bank Head Office Dhaka.
Ref No: 16.00.0000.000.00.000.21.10 Second Small and Medium Size Enterprise Development Project (SMEDP-2) 29 Poush, 1427 13 January, 2021