Bangladesh Bank (BB) has started reviewing the performance of banks in disbursing stimulus package of Tk 20,000 crore for revival of small and medium enterprises (SMEs) that are struggling with adverse impacts of the second wave of Covid-19.
Sources said a team of the central bank has been working to prepare a report on the performance of the individual banks regarding stimulus package disbursement as the fiscal year 2020-21 is going to close this month (June).
"We've to submit a report on stimulus package disbursement for SMEs to the finance minister because it is required to adjust government's expenditures as the fiscal year 2020-21 will close on June 30," said BB's chief spokesperson Serajul Islam.
In view of the overall situation of the second wave of Covid-19, he said the central bank extended the deadline for disbursing the stimulus package for cottage, micro, small and medium enterprises up to June this year.
In the coming budget for FY22, there will be an overall projection on implementation of the stimulus packages the government so far declared for revival of the country's economy hit hard by Covid-19 since March, 2020, said a finance ministry official.
As SME is an important area of the economy, the central bank took special steps for proper and quick disbursement of stimulus package to support the sector, said BB's chief spokesperson Serajul Islam.
He said the central bank introduced an electronic system known as ‘Dashboard’ to expedite implementation of the stimulus package for SMEs that are facing financial hardship since the outbreak of Covid-19 in the country.
The 'dashboard' has helped the central bank strengthen, monitor and supervise the credit disbursement for recovery of this priority sector, he added.
Under the automated system, both the BB and scheduled banks are now able to supervise bank-wise different data including sanction as well disbursement of such loans on real time basis instead of weekly one, he said.
In April 2020, the government declared the stimulus package to help SMEs cope with the economic slowdown caused by Covid-19 pandemic.
Banks had been able to disburse 72.31 percent of the Tk 20,000 crore package as of March 31, 2021 according to the central bank.
Earlier, the central bank extended the deadline twice due to slow disbursement of loans to the SME sector, which employs around 34 percent of the country's total workforce.
The stimulus scheme of three-year tenure acts as a revolving fund, meaning banks would disburse money recovering those from clients.
But banks have showed a lacklustre performance of the package's disbursement in 2020.
The loans are given at a 9 percent interest rate. Of the interest rate, 4 per cent will be borne by the borrowers and 5 per cent by the government.
According to SME Foundation's data, the number of SMEs in the country is about TK 78 lakh and their contribution to GDP now stands at 25 percent. The sector has a 13.53 percent share in the total credit of the banking sector.
