Low demand leads to slow disbursal from six stimulus packages
Skip to main content
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
The Business Standard

Monday
January 30, 2023

Sign In
Subscribe
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
MONDAY, JANUARY 30, 2023
Low demand leads to slow disbursal from six stimulus packages

Economy

Sakhawat Prince
08 January, 2022, 12:45 pm
Last modified: 08 January, 2022, 02:20 pm

Related News

  • Premier Bank Limited signs agreement with Bangladesh Bank for participating in Tk5,000 crore refinancing scheme
  • Central bank outlines 3 challenges for second half of FY23
  • BB set to announce new monetary policy Sunday
  • Card-based forex transactions slow after six months
  • What documents needed for NRB investors to open Taka accounts

Low demand leads to slow disbursal from six stimulus packages

Sakhawat Prince
08 January, 2022, 12:45 pm
Last modified: 08 January, 2022, 02:20 pm

Lending in the second round of six stimulus packages under the Bangladesh Bank has fallen short of the target by a big margin in the first six months of the current fiscal year because of a fall in demand from borrowers with many small businesses turning around from pandemic-induced losses.

Industry insiders say disbursements under bailout packages in the first phase were much higher as many clients were in need of emergency financial support when the pandemic was at its pick. 

The situation has now completely changed all together with Covid-19 turning the corner and many small businesses recovering. That is why, the implementation of the economic bailout schemes is running at a slow pace, they add.

However, Bangladesh Bank officials said banks are showing less interest in giving out loans in the second phase as the finance ministry slowed down the release of interest subsidies after the central bank had received allegations of misuse of stimulus loans in the first round. 

In the first six months of FY22, banks disbursed Tk13,974 crore against the target of Tk64,000 crore from six stimulus packages under the central bank.

Covid-hit industries and service providers received only Tk8,958 crore in working capital, which was only 21.83% of the target.

The Bangladesh Bank has set a target to disburse Tk33,000 crore in the current fiscal year in the sector. As of December last year, only 906 industries availed loan facilities. In the last fiscal year, the government announced a loan package amounting to Tk40,000 crore for this sector.

The total disbursements among 4,200 business entities stood at Tk41,661 crore.

To tackle pandemic fallout, the government has so far announced 28 stimulus packages amounting to a combined fund of more than Tk1.87 lakh crore.  Later, the central bank added the export development fund involving $500 million to it.

The Bangladesh Bank is directly involved in 10 stimulus packages. Two packages have been fully implemented, while the remaining eight are under implementation this fiscal year.

According to the latest data, the central bank has a target to disburse Tk20,000 crore in working capital among small and medium enterprises. But only Tk4,247 crore was disbursed in July-December, which was 21.23% of the target. The number of beneficiaries was 30,941.

Under the stimulus package, the Bangladesh Bank has also set a credit guarantee scheme of Tk2,000 crore for the cottage, micro and small businesses in the current financial year. The disbursement under the scheme stood at only Tk32.55 lakh.

Meanwhile, in the light of a slow pace of disbursements, on 30 December, the Bangladesh Bank decided to increase the extent of credit guarantee against loans to cottage, micro, small and medium enterprises (CMSMEs) to bring more under it. Banks now can lend a minimum amount of Tk25,000 and a maximum of Tk1 crore that the central bank will give a credit guarantee for.

The central bank has set a target for the Tk5,000 crore package in the Pre-Shipment Credit Refinance Scheme. The number of beneficiaries under this package so far is 67 business entities that received loans amounting to Tk504 crore, which was 10% of the target.

In the six months, only Tk233 crore was disbursed from the Tk3,000 crore refinancing scheme set up for low-income professional farmers and small businessmen.

Top News

stimulus packages / Government Stimulus Packages / Bangladesh Bank (BB) / Stimulus Aid Package / stimulus loans / stimulus / stimulus package

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Photo: Collected
    Economic slump drags down growth in VAT collection from big cos
  • It's corruption that bites business harder: CPD
    It's corruption that bites business harder: CPD
  • Import slowdown to affect economic growth: ADB country head
    Import slowdown to affect economic growth: ADB country head

MOST VIEWED

  • TBS file photo
    Z&Z Fabrics introduces Sorona fabric line
  • Top 20 defaulters owe Tk16,588 crore to lenders: Finance minister
    Top 20 defaulters owe Tk16,588 crore to lenders: Finance minister
  • Cry for dollar for Ramadan imports
    Cry for dollar for Ramadan imports
  • Manufacturers feel the pinch as consumers tighten belt
    Manufacturers feel the pinch as consumers tighten belt
  • Infograph: TBS
    State banks spend 80% of their forex for govt imports in H1
  • Photo: TBS
    Indian ship arrives in Ashuganj river port with 958 tonnes of rod

Related News

  • Premier Bank Limited signs agreement with Bangladesh Bank for participating in Tk5,000 crore refinancing scheme
  • Central bank outlines 3 challenges for second half of FY23
  • BB set to announce new monetary policy Sunday
  • Card-based forex transactions slow after six months
  • What documents needed for NRB investors to open Taka accounts

Features

Nandita Sharmin's journey to give organic skincare a new identity

Nandita Sharmin's journey to give organic skincare a new identity

12h | Mode
Illustration: TBS

'The silver lining is that the worst is sort of behind us': Hamid Rashid, UN economist

15h | Panorama
Photo: Bloomberg

BuzzFeed and AI are a match made in fad city

14h | Panorama
Snipe in flight. Photo: Enam Ul Haque

Baikka Beel: 'A world where snipe work late'

1d | Panorama

More Videos from TBS

Sarika Sabrin is waiting for a good film

Sarika Sabrin is waiting for a good film

5h | TBS Entertainment
Take your football game to the next level at Next Level academy

Take your football game to the next level at Next Level academy

6h | TBS SPORTS
“Investments risky without consistent policy, reliable data”- SK Bashir Uddin

“Investments risky without consistent policy, reliable data”- SK Bashir Uddin

8h | TBS Round Table
What does Shahrukh has in his 770 million dollar property?

What does Shahrukh has in his 770 million dollar property?

1d | TBS Entertainment

Most Read

1
Picture: Collected
Bangladesh

US Embassy condemns recent incidents of visa fraud

2
Illustration: TBS
Banking

16 banks at risk of capital shortfall if top 3 borrowers default

3
Photo: Collected
Splash

Hansal Mehta responds as Twitter user calls him 'shameless' for making Faraaz

4
A frozen Beyond Burger plant-based patty. Photographer: AKIRA for Bloomberg Businessweek
Bloomberg Special

Fake meat was supposed to save the world. It became just another fad

5
Bapex calls candidates for job test 9 years after advert!
Bangladesh

Bapex calls candidates for job test 9 years after advert!

6
Representational Image
Banking

Cash-strapped Islami, Al-Arafah and National turn to Sonali Bank for costly fund

EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2023
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net