Bangladesh Bank (BB) has issued a guideline for the stimulus package of Tk 200.00 billion announced by the government for the cottage, micro, small and medium enterprises to boost production and to overcome the possible COVID-19 impacts.
Under the package, the commercial banks and financial institutions will provide loans or investment facilities to the enterprises as working capital from their own fund on the basis of bank-client relations, according to a BB circular issued on Monday, reports BSS.
Earlier, the government announced a set of stimulus packages with an allocation of Tk 727.50 billion. Of the allocation, Tk 200.00 billion will be provided to the cottage, micro, small and medium enterprises working capital.
As per the BB guideline, banks will have to disburse a minimum of 15 per cent loans of its yearly target to businesses in villages and marginal areas from the stimulus package.
The interest rate of this lending facility will be 9 per cent and the concerned industries and business organisations will pay 4 per cent interest of that loan, while the government will provide the remaining 5 per cent as subsidy, the circular said.
Banks will have to provide 70 per cent loans of their yearly target to the cottage, micro and small enterprises while the rest 30 per cent loans should be provided to the medium enterprises, it added.
