Regulatory Alerts2021-05-09
Added
SMESPD Circular No. 05: Regarding Policy of Credit Guarantee Scheme for Cottage, Micro and Small Enterprises (CMSE)
Public Financial Institutions must earmark at least 5% of their Portfolio Guarantee Limit to ensure collateral-free loans or investments for Women-owned Cottage, Micro and Small Enterprises. This requirement implements Para 5.3.1 of the Manual of Credit Guarantee Scheme, which grants priority access to such facilities for women-owned enterprises. The directive is issued under section 45 of the Bank Company Act, 1991 and section 18 of the Financial Institution Act, 1993, and takes immediate effect.
www.bb.org.bd SME and Special Programmes Department CGS Unit Bangladesh Bank Head Office Dhaka SMESPD Circular No.- 05 Date: Baishakh 26, 1428 May 09, 2021 Managing Directors/Chief Executives All Scheduled Banks and Financial Institutions in Bangladesh Dear Sir, Regarding Policy of Credit Guarantee Scheme for Cottage, Micro and Small Enterprises (CMSE) Please refer to the SMESPD Circular No. 03 of July 27, 2020 in relation to the policy matter and SMESPD Circular No. 04 of November 03, 2020 in relation to the Manual of Credit Guarantee Scheme [For Cottage, Micro and Small Enterprises (CMSE)] and subsequent circulars. 02. As per Para 5.3.1 of Manual of Credit Guarantee Scheme, Women-owned Cottage, Micro and Small Enterprises (CMSE) will get priority to obtain CGS facility. Under the said instruction to ensure collateral free loan/investment for Women-owned Cottage, Micro and Small Enterprises (CMSE), henceforth the PFIs have to earmark at least 5% (Five percent) of their Portfolio Guarantee Limit (PGL). 03. The directive has been issued under section 45 of the Bank Company Act, 1991 and section 18 of the Financial Institution Act, 1993. This directive will come into force with immediate effect. Yours faithfully, (SM Mohsin Hossain) General Manager Phone: 9530221