Regulatory Alerts2022-11-08
Added · Updated
SMESPD Circular Letter No. 07: Regarding ease of policy for disbursement of loan/investment under 25000 crore refinance scheme in CMSME sector
The Bangladesh Bank amends paragraphs 2.4(a) and 2.4(b) of SMESPD Circular No. 04 to expand the refinancing scheme's eligibility to include working capital loans and investments for the trading sector, alongside production and services. The revised rules permit up to 40% of refinancing to be allocated to working capital, provided it is not used for hoarding, and require banks to allocate at least 65% of total disbursements to production and services and no more than 35% to trading. This policy adjustment aims to address increased financing needs in the CMSME sector caused by the Russia-Ukraine war and global inflation.