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Despite the government’s Tk60,000 crore stimulus package aimed at revitalising the country’s industrial and business sectors, loan disbursement under the programme remains slow, with entrepreneurs showing limited interest in a special facility designed to reopen closed factories.
According to Bangladesh Bank data, Tk11,000 crore has been allocated under four schemes, of which Tk5,675.50 crore, or slightly more than half, has so far been disbursed.
The highest disbursement has been recorded under the pre-shipment credit scheme, which has an allocation of Tk5,000 crore. Banks have disbursed Tk3,900 crore under the scheme to help export-oriented industries maintain their operations.
Another Tk5,000 crore has been allocated for cottage, small and micro enterprises. However, only Tk1,250 crore has been disbursed so far, indicating relatively low utilisation of the fund.
The entire Tk500 crore allocated under a special scheme aimed at building a balanced economy has already been disbursed.
The startup fund, however, has seen the lowest level of disbursement. Against its Tk500 crore allocation, only Tk25.50 crore has been distributed so far.
Closed industrial units are eligible to seek loans under the stimulus package, but they must first resolve their default loan status and restore a normal relationship with their banks.
Bangladesh Bank Executive Director and spokesperson Arif Hossain Khan said classified or defaulting borrowers cannot directly access the facility.
“First, they have to settle their loan-related issues with the concerned bank and regain regular customer status. The bank can then forward their applications to Bangladesh Bank,” he said.
He noted that Bangladesh Bank has several policies for rescheduling and restructuring loans of defaulting borrowers. If a business can regularise its loans by taking advantage of these facilities, banks may consider providing fresh financing, he added.
Once the relationship between a borrower and its bank is restored, closed factories can apply for loans under the Tk60,000 crore stimulus package, Khan said.
Industry stakeholders said one of the key objectives of the package is to restart production at closed and stagnant factories, encourage new investment and create employment. However, many closed businesses are unable to apply for fresh loans because they have become defaulting borrowers.
They said simply arranging fresh financing would not be enough to reopen such factories. Resolving loan-related complications, ensuring effective access to rescheduling and restructuring facilities, and improving coordination between banks and entrepreneurs are also essential.
They believe the stimulus funds could be utilised more effectively if the problem of default loans is addressed alongside improvements in the overall environment for production and business operations.