SMESPD Circular Letter No. 07: Special Loan or Investment facility for CMSME sector affected by COVID-19 pandemic.

Bangladesh Bank
Head Office
Motijheel, Dhaka-1000
Bangladesh. www.bb.org.bd
SME and Special Programs Department
SMESPD Circular Letter No. 07 Date:
Bhadra 16, 1427
August 31, 2020
Managing Director/Chief Executive
All Scheduled Banks and Financial Institutions Operating in Bangladesh Regarding special loan/investment facility for CMSME (CMSME) sector due to the outbreak of Novel Coronavirus (COVID-19). Your attention is drawn to SMESPD Circular No. 01 issued on April 13, 2020, regarding the subject mentioned in the title.
02. SMESPD Circular No. 01/2020, paragraphs 1(b), 4(b), and 4(d) describe the sub-sector-wise distribution of loans/investments and the structure and limits of each loan/investment at the customer level. Now, in order to make loan disbursement more dynamic under the current package, the following amendments have been made to the said paragraphs for providing working capital loan/investment facilities to affected institutions:
a) In paragraph 1(b) of SMESPD Circular No. 01/2020, the proportional annual total loan/investment ratio of banks and financial institutions in the manufacturing and service sub-sectors, which was previously 50% and 30% respectively, has been rearranged to a combined 80% for these two sub-sectors. b) The amount of loan/investment to be provided to existing loan/investment recipient institutions in manufacturing and service industries shall not exceed 50% of the working capital limit sanctioned/provided to that institution as of December 31, 2019. For new loan/investment recipients, the maximum payable amount will be 50% after determining the working capital loan/investment eligibility limit under the existing policy. c) In the case of loan sanction/disbursement under paragraph 2(b), compliance with the instructions described in paragraph 2.6 of SMESPD Circular No. 2 dated September 05, 2019, must be ensured.
03. Other instructions mentioned in the circular will remain unchanged.
Yours faithfully,
(Husne Ara Shikha)
General Manager
Phone: 9530502