Regulatory Alerts2024-09-05
Added · Updated
SMEDP-2 Circular No. 01: Revolving Fund for CMSMEs under Second Small and Medium Sized Enterprise Development Project (SMEDP-2)
Bangladesh Bank establishes a revolving fund for the Cottage, Micro, Small and Medium Enterprises (CMSME) sector under the SMEDP-2 project, funded by the principal portion of repayments received by participating banks and financial institutions. Participating institutions may access refinancing at a 4% annual simple interest rate, with a maximum lending rate of 8% to end-borrowers, subject to specific application procedures, reporting requirements, and eligibility criteria. The circular outlines strict compliance measures, including penalties for misrepresentation or misuse of funds, and mandates that refinancing is only available for loans disbursed after the circular's issuance, with applications considered within six months of disbursement.