Lenders were unable to implement the second phase of the CMAE stimulus package when customers struggled to repay loans under the first round.
Although the crisis has eased in the small cottage, micro, small and medium enterprises (CMA) sectors, banking professionals and business people are still asking for loans. Eat.
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In April last year, the Bank of Bangladesh released a stimulus package for CMAAAAAAAAAA 20 to protect against the effects of the cholera virus. 77% of the total is distributed.
As a rule, payments made in the form of working capital must be repaid within one year from the date of payment.
The first round of stimulus loans ended in June. The central bank has allocated another TK 20,000 for the current fiscal year, as the economy has not yet returned to normal. The stimulus program will last for three years.
Sixty-three banks and non-bank financial institutions have signed a memorandum of understanding with the Central Bank to provide the loan.
Under the second round, from July 1 to October 23, they lent only Tk 1,555 crore.
Fifty-nine lenders failed to achieve at least 25 percent of their repayment plan in the first quarter of the fiscal year.
Twenty-five lenders share less than 5 percent of their target, according to the BBC.
The disgruntled loan executives told most lenders that it was difficult for them to repay the new loan, as most creditors did not repay their loans in the first week of October.
On October 20, the central bank ordered its creditors to increase their payments by at least 50 percent by December.
For his part, Mid-Amin, a focus on the Commercial Bank of America’s CMSME stimulus package, said the sector has missed out on a number of business opportunities during cultural and religious holidays in recent months.
“So they could not keep their businesses alive. Most customers are asking for a loan to renew so that they do not enter the default zone. ”
The loans provide interest rates of 9 percent. 4% of the cost is covered by the borrowers and 5 percent by the government.
After the loans are repaid, customers are no longer eligible for the interest subsidy facility.
Getting new and qualified customers is a difficult task, he said.
Dhaka Bank Managing Director Imranul Hook said he has given good information to his customers that they are currently in a difficult situation to get their business back.
Dhaka Bank will now repay new loans to its customers only if they repay the existing loans. Some customers are repaying old loans to manage the new one.
Due to non-payment, loans (NPLs) in the micro and small enterprise sector may increase slightly in the coming months. The ratio of bad loans in the CMSME sector is already higher than in other areas.
CMS is the most affected sector by the influenza virus.
Stimulus loans put big NPL lenders in a difficult position because if the customer is unable to repay, the central bank will deduct the money from the current accounts of the lenders with the BBC.
Incentive fund works like a reef finance program. In general, banks first lend to borrowers, and the BBA repays lenders.
“Banks and businesses fear the epidemic In some countries, the epidemic has spread. And the immunization program in Bangladesh is not well completed, ”he said.
Both sides are monitoring the situation closely.
Credit recovery from the stimulus package is not satisfactory, but it makes sense considering the current situation, Rahman said.
The maximum repayment period of the loan is one year, but the scars of the epidemic are so deep that CMSs are struggling to repay.
So Rizwan Rahman, president of the Dhaka Chamber of Commerce and Industry, thinks the loan will not be repaid within the stipulated time.
He called for an extension of two to three years and an extension of the interest rate.