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Rule · BB · 12 May 2020

SMESPD Circular Letter No. 03: Special Working Capital facility for CMSME sector under Financial Incentive package-TK 20,000 Crore

credit
inclusion

The document waives the mandatory requirement for borrowers to obtain a minimum rating from the Credit Information Bureau Limited (CIB) when applying for loans or investment facilities under the TK 20,000 Crore Financial Incentive Package for the CMSME sector, citing disruptions caused by the COVID-19 pandemic. Banks are authorized to provide these facilities without CIB ratings but must select customers based on their own internal policies and risk analysis regarding the bank-client relationship. The circular maintains existing exclusions, prohibiting defaulters and entities whose loans have been restructured more than three times after being classified as substandard or below from accessing this package.

BangladeshBangladesh Bank

Bangladesh Bank
Head Office
Motijheel, Dhaka-1000
Bangladesh
Ref. No. SMESPD/CL/03
SME & Special Programs Department
SMESPD Circular Letter-03 Baisakh 29, 1427
Date: ------------------
May 12, 2020

Managing Director / Chief Executive Officer
All Scheduled Banks Operating in Bangladesh

Dear Sir,

Regarding special loan/investment facilities for the CMSME (MSME) sector due to the outbreak of Coronavirus (COVID-19).

We draw your attention to SMESPD Circular No. 01 issued on April 13, 2020, on the subject cited above.

  1. It is stated in paragraph 2(g) of the said circular that, in the case of taking loans/investments in medium industries, the rating must be at least 'Good' (Good) based on the audited financial statements of the last completed year according to the Credit Information Bureau Limited (CIB) guidelines.

  2. Due to the outbreak of COVID-19, official work has become limited, causing hindrance in providing necessary documents by the respective loan/investment borrowers to complete the customer rating process through CIB by the banks. Consequently, completing the CIB work has become time-consuming.

  3. In the aforementioned situation, to restart production/service activities promptly under the medium industry sector, banks may provide loan/investment facilities without completing the rating process according to CIB, solely for the purpose of providing loan/investment facilities under the discussed package. However, each bank will select customers based on its existing internal policy framework and the bank-client relationship through loan risk analysis.

  4. As per the previously issued instructions mentioned above, defaulting loan/investment borrowers will not be eligible for loan/investment facilities under this package. Furthermore, if any loan/investment borrower institution's loan/investment is classified as substandard or below, and such loan/investment borrower institution has been rescheduled more than 03 (three) times, such loan/investment borrower institution will also not be eligible for loan/investment facilities under this package.

  5. Additionally, other instructions contained in SMESPD Circular-01 dated 13/04/2020 will remain unchanged.

These instructions shall be implemented immediately.

Yours faithfully,
(Lila Rashid)
General Manager
Phone: 9530502

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Source: Bangladesh Bank — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works

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