SMESPD Circular No. 02: Revision/Addition/Deletion of Some Provisions of 'Bangladesh Bank Fund' under Small Enterprises Refinance Scheme

(50080)

Subject:

Bangladesh Bank Reference No.: 7126101-20

20 Bhadra 1418 Bangabda

SMESPD Circular No. -02 Date: 04 September 2011 AD

Managing Director/Chief Executive To All Scheduled Banks/Financial Institutions of Bangladesh Head Office Dhaka.

Dear Sir,

Subject: Regarding certain amendments/additions/deletions to the policy of 'Bangladesh Bank Fund' under the Small Enterprises Refinance Scheme.

It has been decided to implement the following changes/amendments/additions to the policy of Bangladesh Bank's 'Bangladesh Bank Fund' under the Small Enterprises Refinance Scheme:

1. Applications for refinancing will be considered for cottage and micro enterprises, similar to small enterprises.

2. The existing refinancing program at a 10% interest rate (Bank Rate + 5%) for small enterprises for women entrepreneurs will also be applicable to cottage and micro enterprises.

3. 100% refinancing will be provided for loans granted in the manufacturing, service, and trade sectors to women entrepreneurs on a priority basis. However, if funds are exhausted, refinancing will be provided only in the industry (manufacturing) and service sectors.

4. For entrepreneurs other than women entrepreneurs, 100% refinancing will be provided for loans granted in the cottage, micro, and small enterprise sectors, subject to fund availability, only in the manufacturing and service sectors.

5. The refinancing limit for cottage industry/enterprise has been revised from 10,000 Taka to 500,000 Taka, and for micro industry/enterprise, from 20,000 Taka to 1,000,000 Taka.

6. The refinancing limit for small industry/enterprise will remain unchanged at a maximum of 500,000 Taka.

7. Applications for refinancing from the 'Bangladesh Bank Fund' must be submitted to Bangladesh Bank on a monthly basis by the 15th of the following month, instead of quarterly. If an application for refinancing is submitted to Bangladesh Bank by the 15th of the following month, it may be submitted along with the application of the subsequent month.

8. Other existing policies of the 'Bangladesh Bank Fund' will remain unchanged.

This circular will be implemented immediately.

Please acknowledge receipt.

Yours faithfully,

(Sukomal Singh Chowdhury) General Manager Phone: 7165322 Bangladesh Bank SME & Special Programs Department Head Office P.O. Box 325 Dhaka.

cc: Noted.