The bank is one of the first three banks in the country to have completed the process
BRAC Bank has completed its disbursement process of the Tk20,000-crore stimulus fund for the cottage, micro, small and medium enterprises (CMSMEs).
The bank is one of the first three banks in the country to have completed the process, said a press release.
Banks have disbursed about Tk8,600 crore among 52,000 CMSMEs as of December 3, according to the central bank's latest data, media reports said.
BRAC Bank has disbursed Tk1,185 crore to 12,669 CMSMEs across the country as of December 24, 2020. Starting from June 2020, the bank took six months to complete its disbursement target of Tk1,100 crore.
Bangladesh Bank has recently allotted an additional Tk200 crore to BRAC Bank for disbursement considering the performance, the press release said.
BRAC Bank's Head of SME, Syed Abdul Momen said, "We are glad to have closed the disbursement before the deadline. Payment of small loans typically takes longer as it takes more time to scrutinize the documents of the CMSMEs."
"However, with the guidance of the Central Bank, slowly but steadily, we have completed the disbursement and kept our promise," he said.
"Even during the outbreak of Covid-19 in Bangladesh, we continued our support to the CMSMEs. We have disbursed more than 61,000 loans to the CMSMEs that accounts for Tk10,181 crore as of November 30, 2020," Syed Abdul Momen added.
BRAC Bank's Managing Director and CEO Selim RF Hussain said, "I thank our government for coming up with the much-needed stimulus packages for the CMSMEs and proactively demonstrating ways to damage-control of the economic losses."
The government announced loans at 4 per cent for the CMSMEs to avert effects on the CMSMEs and encourage the banks to disburse stimulus packages.
As banks charge the CMSMEs 9 per cent interest, the government announced that it would bear 5 per cent of the interest, the press release added.
"Our central bank deserves a big thanks for their continuous support and encouragement to look for the CMSMEs and also for sustaining us with policy relaxation and deadline extensions," he added.
The deadline for disbursing the CMSMEs' bailout funds is December 31, 2020, the press release further said.