Bangladesh Bank (BB) has instructed banks and financial institutions to expedite the disbursement of the Tk 5,000 crore refinancing funds for cottage, micro, small, and medium enterprises (CMSMEs) and meet their full distribution targets by November.
The directive was issued during a meeting between top executives of participating banks and financial institutions and a Bangladesh Bank Deputy Governor at the central bank headquarters on Thursday (October 8). Managing directors and chief executives from 34 banks and five non-bank financial institutions (NBFIs) attended the session.
Briefing reporters after the meeting, Association of Bankers, Bangladesh (ABB) Chairman and City Bank Managing Director Mashrur Arefin said the refinancing scheme was introduced to provide low-interest working capital loans to CMSME entrepreneurs.
"Following the signing of agreements with banks on September 10, loan disbursements commenced, with approximately Tk 450 crore released in the first two weeks," Arefin said. "The central bank has now urged all participating institutions to complete the full disbursement of the Tk 5,000 crore fund by November to ensure marginal entrepreneurs receive timely, low-cost capital."
Broader Campaign Urged for 'Uddyog' Project
The meeting also reviewed the progress of Bangladesh Bank’s pilot initiative, the 'Uddyog' project, designed to foster youth entrepreneurship across selected districts in various divisions.
Acknowledging that the project has yet to yield the expected response, the ABB Chairman emphasized that banks have been instructed to intensify promotional campaigns at the district, upazila, and union levels.
Under the 'Uddyog' scheme, young entrepreneurs—specifically those aged 21 or below—are eligible to receive up to Tk 10 lakh from banks' Corporate Social Responsibility (CSR) funds alongside an additional Tk 10 lakh in commercial loans.
Banks Deny Non-Cooperation on Closed-Factory Package
Addressing allegations that banks are hesitating to disburse funds under the government's Tk 60,000 crore package aimed at restarting closed and semi-closed industrial units, Arefin clarified that banks are fully committed to the initiative.
"There is no question of non-cooperation from the banks," he asserted. "However, while extending fresh credit to distressed units, banks must carefully evaluate risk parameters to prevent these loans from turning into new non-performing loans (NPLs)."