SMESPD Circular Letter No. 05: Regarding reporting of Special Working Capital facility for CMSME sector under Financial Incentive package-TK 20,000 Crore

Ref: SMESPD
Department of SME and Special Programs
Bangladesh Bank
Head Office
Dhaka.
22 June 2020

SMESPD Circular Letter No.-05 Date: ----------------- 08 Asharh 1427

To,
Managing Director/Chief Executive
All Scheduled Banks/Financial Institutions operating in Bangladesh

Dear Sir,

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

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

2. In accordance with Clause 6(x) of the aforementioned circular, instructions were issued to every bank and financial institution to submit the necessary information in the tables provided in Annex-1 (A and B) and 2 (A and B) to the 'Department of SME and Special Programs' of Bangladesh Bank by the 10th of each month, regarding the working capital loans distributed under the said package for the preceding month.

3. It is observed that banks and financial institutions have not been able to achieve the expected pace in the loan distribution program under the said circular. Therefore, there is a need to further strengthen the supervision of loan/investment distribution in the CMSME sector for close monitoring.

4. It has now been decided that the details of CMSME loans/investments distributed under the said package shall be submitted to the 'Department of SME and Special Programs' on a fortnightly basis instead of monthly. The report for the first fortnight shall be submitted by the 20th of the concerned month, and the report for the second fortnight shall be submitted by the 5th of the following month.

5. Apart from this, other instructions contained in the aforementioned circular shall remain unchanged.

6. These instructions are issued under the powers conferred by Section 45 of the Bank Company Act, 1991.

These instructions shall come into force immediately.

Yours faithfully,

(Md. Ali Mahmud)
General Manager (In-charge)
Phone: 9530172