SMESPD Circular Letter No. 03: Amendments to Financing Facility Under LFSSP Project

website: www.bb.org.bd
BANGLADESH BANK
(Central Bank of Bangladesh)
Head Office
Motijheel, Dhaka-1000
Bangladesh
SMESPD (LFSSP) Circular Letter No- 03 3 Date: 21/07/2022

Managing Directors/Chief Executive Officers All Banks and Financial Institutions in Bangladesh Head Office Dhaka. Financing facility under “Line of Finance to Support SMEs Project under the IsDB SPRP for Covid-19, Restore Track (LFSSP), BGD-1074.”

Please refer to the SMESPD (LFSSP) Circular No- 03, Dated 27 March, 2022 regarding the Financing facility under the captioned project. A. The following clauses of the aforesaid circular have been amended as under:

1. Agency Fee (Sl. No.- 8):
   The words ‘’for each drawdown’’ in the sentence ‘BB will provide an amount not exceeding BDT 500.00 (including VAT & Tax) to each PFIs (as an agent) for each drawdown as agency fee’ will be deleted;

2. ELIGIBILITY CRITERIA OF PARTICIPATING FINANCIAL INSTITUTIONS
   (Annex-A):
   i) The minimum successful operational experience of PFIs of 03 (three) years will be substituted by 02 (two) years; ii) The minimum standard of CAMELS rating of PFIs of ‘Satisfactory’ will be substituted by ‘Fair’;

3. Financial Statements : Attachment to Accreditation Assessment Form(Annex-C):
   ‘NPL’ will be substituted by “NPI”.

4. FORM OF AGENCY AGREEMENT (SCHEDULE IV, Para no. 1.1.2):
   The words ‘‘ten (10) US Dollars’’ will be substituted by ‘’Taka Five hundred (500/-) only including VAT and Tax’’; Continued/2 SME & Special Programmes Department LFSSP PMU

5. SAMPLE DISBURSEMENT PLAN FORM (Annex-G):
   In the 3rd column title ‘Name & Address of contractor/supplier’ will be substituted by “Name & Address of CMSMEs/contractor/supplier” and in the footnote ‘*Whether women/youth-led enterprise or not’ will be substituted by ‘’*Whether women/youth-led enterprise and Kind of Investment Scheme (Short/Mid/Long Term)’’;

6. TERMS AND CONDITIONS OF ON- FINANCING FACILITY (OFF) TO PFIs (Annex￾E) and TERMS AND CONDITIONS OF SUB-INVESTMENT TO ELIGIBLE PROJECT
   COMPANY/ENTERPRISE (Annex-K):
   i) In both annexes, ‘Murabaha Financing (Instalment Sale)’ will be substituted by “Murabaha Financing” as the mode of financing; ii) Further under the sub-heading III (Other Eligibility Criteria of Project Companies/Enterprises) of Annex-K, in ‘sl. b’: ‘’………. and the company/enterprise must not be a defaulter of any kind of institutional investment before the crisis’’ will be substituted by “..................... and the company/enterprise must be a regular borrower of any kind of institutional investment before the crisis of pandemic (Covid-19)”. B. The deadline of the submission of the application will be extended further 03 months from the expiration of the deadline declared on SMESPD Circular no. 03, dated 27/03/2022 or a later date approved by BB authority. Other relevant instructions in this regard shall remain unchanged. Yours Sincerely, (AKM Sayduzzaman) Additional Director & Project Director (LFSSP) Phone: 9530098