BUILD appreciates time extension of stimulus package for CMSME

Business Initiative Leading Development (BUILD) has appreciated that the Bangladesh Bank has extended time for the disbursement of Tk200 billion stimulus package for the cottage, micro, small and medium enterprise (CMSME) for those banks and financial institutions who are yet to meet targets, reads a press release.

Total disbursement of the stimulus package is Tk1,0825.28 crore till 31 December which is 54.13% as per the statement of the central bank, where 63% of the approved amount has been disbursed. The Bangladesh Bank has taken this issue seriously and extended its time up to 31 March 2021, which was a timely initiative.

BUILD worked for the Stimulus packages since its initiation and put forward several recommendations through its Financial Sector Development Working Committee Meeting for extension and effective use of the Stimulus Packages, especially for CMS segment.

On behalf of the entrepreneurs, BUILD requested the Bangladesh Bank to extend the time for disbursement of the stimulus package of CMSMEs on 28 December 2020. 

CMS enterprises were eager to see their extension for loan payment instalment beyond December 2020 to avoid the risk of receiving tag of loan defaulters.

It is also seen that some banks have fully implemented their target while some are a bit behind. We would like to say well-performed banks having experience in providing loans to CMSMEs can be increased so that more loans can be provided to the CMSMEs of the country in time, according to the press release.

From the statement of the central bank, it is seen that disbursement for women entrepreneurs has increased by about 37% in December from the earlier month which is a good sign. It seems that disbursement for women entrepreneurs has been increasing slowly and considering this issue there could be some further extension of funds for them.