Bangladesh Bank, the country’s central bank, has allowed the local banks and financial institutions to provide working capital loans to the cottage, micro, small and medium enterprises (CMSMEs). The central bank’s SME and Special Programs Department, vide a circular on November 8, said that government banks and financial institutions could give short-term loans to CMSMEs to meet the working capital needs from the refinance scheme of TK250 billion. Until now, the banks in the country could not offer any loans to meet working capital needs but can now give up to 40% of their total disbursements to the CMSME sector as working capital.
