Stimulus package for CMSMEs: Banks assuage BB on deadline

Commercial banks on Wednesday assured the central bank of meeting the deadline of October 31 for disbursement of funds meant for cottage-micro-small-medium enterprises (CMSMEs).

The rate of fund disbursement under the government announced stimulus package for the CMSMEs that was believed to be the hardest hit by the pandemic is poor.

Banks have so far disbursed Tk 21.0 billion or over 10 percent of the total package amounting to Tk 200 billion.

Bangladesh Bank (BB) earlier gave a deadline of October 31 to the commercial banks for disbursing all funds meant for the CMSMEs.

This was the third follow-up meeting of the BB with the CEOs of leading commercial banks.

BB Governor Fazle Kabir presided over the meeting while CEOs and managing directors of some 26 banks participated in it.

Ali Reza Iftekhar, chairman of the Association of Bankers, Bangladesh said: "We've assured the central bank that we will disburse more than 80 per cent by the deadline."

Mr Iftekhar also CEO and managing director at the leading privately-owned commercial bank ---EBL --- said that the disbursement was poor initially as many employees belonging to the banks were coronavirus infected.

"Each bank has around 100-150 infected, adding that this pandemic has forced us go slow."

He said now it gained momentum by adding: "We'll achieve the target."

He also said the ratio of disbursing loans between rural and urban areas applicabe for the CMSMEs should go to expedite the disbursement.

Each bank has a target of over Tk 3.0 billion to disburse to the CMSMEs within the deadline.

Some banks however disbursed around 40 percent while mostly hovering between 10-15 percent.