Bangladesh Bank has pressed the brake on crossing the timeline in lending from Tk 250-billion refinancing scheme, binding the lenders within 12-month tenure.
The central bank recently announced the refinancing scheme for working-capital loan to be disbursed to cottage, micro, small and medium entrepreneurs (CMSME), under government stimulus measures for helping businesses in recovery from shocks stemming from the global pandemic and the Russian war in Ukraine.
In a circular issued Wednesday the BB said it had been observed that some banks and financial institutions disbursed such credits for periods of over a year, which contradicts the main objective of working-capital loan.
"The tenure of the working-capital loan/investment will be 12 months. But banks and financial institutions can renew the invested loan in the working-capital sector, if necessary. For this, the lenders will have to appeal to the BB," the regulatory ruling says.
It also noted that the central bank can fully realise the re-financed credits including the profits/interest against the working-capital loan at one go from the lending entities.
The BB ordered the banks and financial institutions to implement the instructions immediately.
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