September 23, 2021, 5:33 am

Staff Correspondent

2021-09-09 21:00:39 BdST

FBCCI wants quick implementation of CMSME stimulus package

Federation of Bangladesh Chambers of Commerce and Industry President Md Jashim Uddin on Thursday called upon the government for speedy implementation of the stimulus package meant for the Cottage, Micro, Small, Medium Enterprise (CMSME) sector for ensuring desired economic recovery amid the Covid-19 pandemic.

He also demanded increasing the timeframe of term loan for the SME sector.

The apex trade body chief raised the demands while speaking at a view-exchange meeting with the chief executives of the banks.

The event titled "Ensuring overall economic development under the existing situation: problem and potentials" was organized by FBCCI at a city hotel, said a press release.

Mentioning that the allocation of Covid-19 stimulus packages for CMSME sector reached 38 per cent in India, 33 percent in Thailand and 24 percent in Malaysia, Jashim said in Bangladesh it reached only 22 percent.

He said although the implementation of the stimulus packages in the export and large-scale industries sectors is satisfactory, the implementation rate of stimulus package in the CMSME sector is 77 percent.

Under the circumstances, Jashim called upon the government to speedily disburse the fund from the stimulus packages to keep the businesses of cottage, micro and medium entrepreneurs operational.

At the same time, he suggested providing support to the unintentional loan defaulters side by side taking action against the intentional loan defaulters.

For the flourishing of the SME sector, the FBCCI president suggested increasing the timeframe for term loan to 15 years from 10 years having a grace period of two years side by side providing bank loans to the SME entrepreneurs not having bank accounts with the recommendations from the concerned trade bodies.

In this regard, he urged the banks to follow the master circular of the Bangladesh Bank on CMSME financing.

The FBCCI chief also suggested increasing the rate of down payment to 2 percent from 1 percent for loan rescheduling to simplify the industrialization process.

In order to further reduce the cost of doing business, he proposed further reducing the corporate tax rate of banks, insurance companies and financial institutions to 35 percent from 37.5 percent.

The Association of Bankers, Bangladesh (ABB) Chairman Ali Reza Iftekhar said around 80 percent of the stimulus packages have so far been disbursed.

He said it is not always possible for banks to provide long-term loans, for which there is a need for creating a bond market culture in the country.

The ABB chairman pledged to work with FBCCI for speedily disbursing the stimulus package of the CMSME sector.

Chief executive officers of different commercial banks and FBCCI directors took part in the open discussion.

FBCCI Senior Vice President Mostafa Azad Chowdhury Babu, Vice President M Amin Helali, M Habib Ullah Don and MA Razzaque Khan Raj were present, among others, in the programme, moderated by FBCCI CEO Mahfuzul Haque.

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