To minimise the fallouts of the impact of COVID-19, Bangladesh’s central bank– Bangladesh Bank– recently increased the credit facility limit for the CMSMEs (cottage, micro, small and medium) up to Taka 5 crore.
Media reports maintained this adding the amount would be sanctioned by the banks and other financial institutions under credit guarantee scheme of Bangladesh Bank.
As per reports, earlier there was a credit guarantee facility between Taka 25,000 and maximum Taka 1 crore under the scheme even if the central bank took this decision to ensure 100 per cent implementation of the third phase loan disbursement of Taka 25,000 crore in the CMSME sector announced by the Government.
The credit limit for the CMSMEs has been re-fixed at a minimum of Taka 25,000 and a maximum of Taka 5 crore, as per the circular issued by the central bank.