BB measures to support small businesses: FBCCI

The country's apex trade body has welcomed the central bank measures that aimed at channelling funds to small businesses hit hard by the coronavirus pandemic.  

Banks and institutions have also been urged to disburse loans in the shortest possible time by adopting the simplest procedure possible in all steps from receiving application to loan disbursement, said the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) in a statement yesterday.

It also lauded the Bangladesh Bank instruction to transfer all interest and profit on all types of loans and investments imposed between April 1 and May 31 to interest-free blocked accounts.

 "The FBCCI believes the business community will particularly benefit from the facility," it said.

On April 5, Prime Minister Sheikh Hasina declared a financial assistance package of Tk 20,000 crore to introduce low-interest working capital loan through the banking system with a view to retaining the capacity of cottage, micro, and small and medium enterprises (CMSMEs) and jobs.

Following the prime minister's announcement, FBCCI President Sheikh Fazle Fahim submitted a proposal to the BB.

"Most of the CMSMEs entitled to the working capital loan and investment facility have minimal infrastructure and relationship with bankers compared to others," he said in the statement. 

So, if these entrepreneurs were selected upon reviewing basic standards, financial statements and internal credit risk rating system, many would fail to meet qualifications, he said.

He also called for an easy access to credit for all newspapers and television stations.