Central bank eases loan conditions for small entrepreneurs
The facility will remain effective till December 2022
Cottage, micro, and small enterprises considered public interest entities as per the Financial Reporting Act will no longer have to submit financial reports audited by chartered accountants to obtain or renew bank loans.
The Bangladesh Bank on Tuesday relaxed the condition, which will remain effective till December next year.
From January 2023, such enterprises will again have to submit audited financial reports, and banks will have to save those in their loan files.
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The move is aimed at reviving the economy from Covid impacts and increasing credit flow, according to a circular issued by the central bank.
The cottage, micro, small, and medium enterprise (CMSME) sector generates the highest number of jobs in Bangladesh.
A Tk20,000 crore stimulus package was announced for the sector in April last year. It has been more than a year since then, but banks have not yet been able to disburse the entire fund.
Of the package, Tk10,000 crore is considered as a refinancing fund.
In addition to that, a package of Tk2,000 crore has recently been announced for refinancing.
The central bank launched the fund with the help of Asian Infrastructure Investment Bank.
