Deadline Extended for Disbursement of Funds to CMSMEs

Bangladesh Bank has once again extended the timeframe for the disbursement of funds allocated for the cottage, micro, small and medium enterprises (CMSMEs) under the Covid-19 incentive package.

The time has been extended until June 30 this year as most banks and financial institutions have failed to implement loan disbursement within the previous time frame of March 31, reports media.

The central bank on Monday issued a circular in this connection in response to the second wave of Covid-19 in the country.

Citing analyses of banks and financial institutions data, the circular said, 72.31% of Tk20,000 crore of the stimulus package were disbursed until March 31.

Although the interest rate on the loan under this package is 9%, the customers have to pay only 4% as the government provides 5% interest as a subsidy.