Regulatory Alerts2013-10-29
Added · Updated
SMESPD Circular No. 01: Funding Assistance Program for Islamic Shariah-Based Financing to Agro-based and Small Enterprises
Bangladesh Bank establishes a Funding Assistance Program allowing Participating Financial Institutions to receive 100% fund support for Islamic Shariah-based investments in agro-based industries located outside divisional sadars and Narayanganj city, with fixed asset values not exceeding BDT 10 crore. The program also provides up to 100% support for small enterprises with investments between BDT 10 Thousand and BDT 50 Lac, prioritizing women entrepreneurs who are subject to a profit rate cap of the prevailing Bank Rate plus the Mudaraba Savings Account rate. Participating institutions must sign a Participation Agreement, open a Mudaraba Fund Account, and submit funding applications by the 5th working day of the following month for investments sanctioned within the prior 35 days. Funds must be disbursed within 5 working days of receipt, and failure to comply with disbursement timelines or provision of false information results in fund withdrawal or revocation with double the prevailing profit rate.