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Banks and NBFIs can now disburse 80% of their overall loans to the manufacturing and service sub-sectors
The Bangladesh Bank on Monday relaxed its rules for banks and non-bank financial institutions on a fast-track issuing of loans to cottage, micro, small and medium enterprises (CMSMEs) from the Tk20,000 crore stimulus package announced by the government.
The central bank issued a circular in this regard on the day.
Even though the central bank set up a Tk10,000 crore refinance scheme to support the banks and NBFIs with liquidity, the disbursement of loans from the package remained low, prompting the central bank to extend the loan disbursement deadline by two months to October.
As per the new circular, banks and NBFIs can now disburse 80% of their overall loans to the manufacturing and service sub-sectors.
Earlier, the banks and NBFIs were allowed to disburse 50% and 30% of their total loans to the manufacturing and service sub-sectors respectively.
(DT)
