Regulatory Alerts2020-09-03
Added · Updated
SMESPD Circular Letter No. 08: Special Loan or Investment Facility for CMSME Sector Affected by COVID-19 Pandemic
The Bangladesh Bank removes the previous target of allocating at least 15% of annual total loans/investments to rural working capital loans to enable the rapid distribution of the 20,000 crore Taka stimulus package for the CMSME sector. It introduces a moratorium on loan/installment repayments for cottage, micro, and small sector working capital loans under this package, while keeping the loan nature, one-year tenure, and approved limits unchanged. Banks and financial institutions are required to ensure their allocated distribution targets are achieved by October 31, 2020, with interest rates capped at 9% and reporting via CL-2.