Regulatory Alerts2022-03-10
Added
SMESPD (SPCSSECP) Circular No. 02: Refinance Facility for Cottage, Micro and Small Enterprises under ADB Loan No. 4142-BAN (COL)
Bangladesh Bank establishes a refinance facility under the Supporting Post COVID-19 Small Scale Employment Creation Project (SPCSSECP) to provide up to US$150 million in funding for Cottage, Micro and Small Enterprises (CMSEs). Participating Financial Institutions (PFIs) must meet specific eligibility criteria, including a CAMELS rating of 2 or better and a non-performing loan ratio below 10%, to on-lend funds to targeted groups such as returning migrant workers and unemployed youth. The facility offers refinancing at 1.50% to PFIs, with a maximum sub-loan limit of BDT 5 million and a maximum interest rate of 5.50% for end borrowers. PFIs are required to submit monthly refinance applications within 20 days of the following month and ensure that at least 20% of qualified enterprises are women-led.