SMESPD Circular Letter No. 13: Special loan/investment facility provided to CMSME sector affected by Novel Corona Virus (COVID-19) pandemic

Bangladesh Bank
(Central Bank of Bangladesh) SME & Special Programs Department Main Office Motijheel, Dhaka-1000 Bangladesh.

Ref. No.-------------------
Date: 16 Kartik, 1427
SMESPD Circular Letter No. 13
Date: -------------------
November 01, 2020

Managing Directors/Chief Executive Officers
All Scheduled Banks and Financial Institutions operating in Bangladesh

Subject: Special loan/investment facility provided to CMSME (CMSME) sector affected by the outbreak of Novel Corona Virus (COVID-19).

Reference is drawn to your attention to SMESPD Circular Letter No. 08 dated September 03, 2020, on the subject cited above.

2. It was mentioned in paragraph 4 of the aforementioned circular letter that, "All banks and financial institutions must ensure the achievement of their target for loan/investment distribution under the stimulus package by October 31, 2020, by taking effective measures."

3. However, analysis of information received from banks/financial institutions shows that while some banks/financial institutions are able to distribute loans/investments according to the set targets, some banks/financial institutions have fallen short of the achievement. As a result of such shortfall by banks/financial institutions, the desired production and service expansion in the CMSME sector is being hindered. Consequently, weak and vulnerable economic activities are being damaged.

4. Considering the above-mentioned issues, in order to counter the adverse impact of COVID-19 and to help the CMSME sector recover from losses, and to ensure the proper and successful implementation of the special CMSME loan/investment stimulus package of 20,000 crore Taka announced by the Honorable Prime Minister, the deadline for implementation of the target for loan/investment distribution set for banks and financial institutions is hereby extended from October 31, 2020, to November 30, 2020.

5. In addition, the other instructions mentioned in the aforementioned circular letter will remain unchanged.

6. This directive will take immediate effect.

7. This directive is issued under the powers conferred by Section 45 of the Bank Company Act, 1991.

Yours faithfully,
(Husne Ara Shikha)
General Manager
Phone: 9530502