Small and medium enterprises (SME) which cannot provide collateral will get government stimulus through banking channel under special arrangement.
President of the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) Sheikh Fazle Fahim said this on Wednesday in a virtual press briefing jointly organized by E-CAB and the Ministry of Commerce.
Sheikh Fazle Fahim said most of the SMEs were not regulated or protected by the state and formal financing was out of their reach.
He said, "The government announced Tk20,000 crore stimulus packages for SMEs. A major problem for this financing is that most of such businesses do not come under the risk assessment structure of banks."
"We spoke to the bankers' association. They gave us green signal that SMEs which do not have previous loan will get loan under stimulus package under a special arrangement," Sheikh Fazle Fahim claimed.
The FBCCI president informed that the bankers already prepared a check list for SMEs where the businesses would need to provide a plan for how they would return the loan.
"It could be their inventory, their sales records so that banks can get a minimum assurance of getting their money back without taking collateral," he further added.
The agreement will be finalized within a week, Sheikh Fazle Fahim informed. After that, the banks will notify their branches and the businesses will be informed through FBCCI members.
Commerce Minister Tipu Munshi, while speaking as chief guest, said the government was also working on the matter.
"The process is ongoing. Bankers and the private sector are working to come up with a solution," Tipu Munshi said.
E-commerce Association of Bangladesh President Shomi Kaiser said the industry was working as frontline fighters during the Covid-19 shutdown.
Shomi said, "We need government's support for bank financing and tax exemption in the upcoming budget."
E-CAB leaders said the industry was currently Tk8,000 crore market engaging 1.25 lakh people.