Trade
4 years ago

‘Banks reluctant to disburse loan from stimulus package to MSMEs’

Published :

Updated :

Banks are reluctant to disburse loan from the stimulus package to the micro, small and medium enterprises (MSMEs), according to the experts and stakeholders.

The mentioned that MSMEs sometimes face challenges in access to finance, market linkage, product standardisation, modern technology, access to training and lack of skilled manpower.

Stakeholders of MSME sector of old-Dhaka-based specialised associations therefore urged for speedy disbursement of stimulus along with allowing them to pay VAT, tax and all utility bills through equal instalments in next six months for the sustainability of their businesses.

They made their opinions and call at a discussion meeting through Zoom, organised by Dhaka Chamber of Commerce and Industry (DCCI).

The DCCI seats with the stakeholders of old-Dhaka-based specialised business associations to hear their concerns in getting bank loans from the stimulus and the downward trend of businesses during this pandemic.

Moderating the meeting, Shams Mahmud, President, DCCI said 13 million MSMEs are contributing 25 per cent of our GDP and 35.5 per cent of our total employment. MSMEs’ contribution to the export earnings is ranging from 75 per cent to 80 per cent. But the sector is hit hard by Covid-19 pandemic.

He also informed that DCCI is planning to sit with the banks and will try to figure out what are the procedures SMEs need to comply with for getting bank loans from the stimulus.

He also urges the government to announce 2021 as the year of CMSME sector. We want to come out of this situation, he said. We need SME linked FDI policies to make CMSME sector grow further, he added.

Programme’s Guest of Honour Hossain Khaled, Managing Director, Anwar Group of Industries and former DCCI president, said small enterprises all together create a big conglomerate and large businesses are mostly dependant on SMEs.

Md. Alauddin Malik, President of Local Garments Manufacturers Association, said that we did not able to sell any products during this pandemic time. This sector is hit hard.

Hossain A Sikder, President of Dhaka Shilpa Malik Samity, said 120 industries are there in Keranigonj BSCIC industrial area. Many employees went home due to industries closure and most them are yet to come back.

Md. Abdur Razzaque, President of Bangladesh Engineering Industry Owners’ Association, requested the government for deferral of VAT and electricity bill payment for a year. This sector represents 40,000 members in Bangladesh.

Mohammad Jalal Uddin, President of Bangladesh Bread Biscuit and Confectionery Makers Association, said most of MSMEs in old Dhaka do not have bank accounts.

He said 95 per cent of SMEs are good borrowers and successfully repaid their loans.

Alhaj Md. Golam Mawla, President of Bangladesh Edible Oil Wholesalers Association, said most of MSMEs are unable to fulfil all requirements of banks. He also said entrepreneurs of this sector are yet to get fiscal support from banks.

Vice President of DCCI Mohammad Bashiruddin, Director and former Senior Vice President, DCCI Waqar Ahmad Choudhury, among others, also spoke on the occasion.

They also called upon the government to give focus on duty structure, transportation sector, port, employment and alternative financing mechanism, non-fiscal support to the SMEs.

Senior Vice President of DCCI N K A Mobin gave concluding remarks.

[email protected]

Share this news