BSS-51 FBCCI for quick disbursement of virus stimulus fund

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BSS-51

COVID19-FBCCI-STIMULUS-PACKAGE

FBCCI for quick disbursement of virus stimulus fund

DHAKA, May 6, 2020 (BSS) – FBCCI President Sheikh Fazle Fahim today urged the country’s banks to take quick measures to disburse stimulus money declared by the government to stave off COVID-19 impact on economy.

He said banks should play a pro-active role by adopting easy ways to help the country’s cottage, micro, small and medium enterprises in getting their share from the package of Taka 20,000 crore announced by Prime Minister Sheikh Hasina.

Fahim requested the Association of the Bankers Bangladesh (ABB) to expedite the process in a discussion as coronavirus crisis has put various sectors under serious strains. He also called for engaging FBCCI members — all chambers and associations–to provide stimulus funds to small shops, clinics and hospitals, women entrepreneurs and media houses.

The discussion, which was held in FBCCI’s Icon Tower in Motijheel, was also participated by chairmen and managing directors of various state-owned and private banks, former FBCCI presidents, FBCCI directors and economists.

Sheikh Fahim made statement in a discussion titled “Roadmap to Stimulus Loan Execution Taka 20,000 crore and Taka 30,000 crore”.

He said the government-announced stimulus package was “targeted and focused”, but now it was the responsibility of banks to do the rest. To help the national economy survive the banks must come forward to quickly execute the plans for stimulus package, added FBCCI President.

“The decision to provide food assistance to 4 crore people, Taka 700 crore for the workers in the informal sector, Taka 20,000 crore for the SME sector, Taka 30,000 crore for the large sectors, Taka 5,000 crore for the export-oriented sector and Taka 5,000 crore for the agriculture sector is a brave one. Now, the banks should shoulder the responsibility for the interest of the national economy,” he said. Welcoming various steps of Bangladesh Bank (BB) to resolve liquidity crisis in the banking sector, Fahim said the central bank’s decisions have strengthened the base for banks to disburse the stimulus money in a disciplined manner.

“Due to BB’s steps, banks’ liquidity is supposed to increase up to 46,000 crore and it is supposed to be 70,000 crore with Export Development Fund (EDF) while through the statutory liquidity ratio (SLR) there should be an excess fund of Taka 1 lakh crore. Under the stimulus package the facility for subsidy for interest and matching fund option would benefit the banks,” Fahim said.

“Under such schemes state-owned banks and private banks can forge a strong partnership so they can work together and provide support to various sectors, especially the SME sector,” he said.

Fahim also said if the country’s burgeoning informal sector can survive through the crisis with the contribution from state-owned and private banks this informal sector will be integrated into the formal sector one day.

“This will be a win-win situation, and banks will also benefit enormously through this inclusion,” he said.

FBCCI’s former president Shafiul Islam Mohiuddin, MP, said steps should be taken so the entrepreneurs, especially the smaller ones, do not face troubles in getting stimulus money for documentation.

He proposed to FBCCI for setting up of a “Help Desk” to provide support to such small businesses.

He said better coordination among regulators such as National Board of Revenue, BB, FBCCI and other associations is necessary.

Chairmen and managing directors of state-owned and private banks thanked the government and the BB for taking steps for eliminating liquidity crisis in the financial institutions.

Supporting the statement, ABB Chairman Ali Reza Iftekhar said it would be easier to implement the plans for stimulus package as there was no liquidity crisis in the country.

Iftekhar said banks are ready to disburse money “speedily and timely” subject to proper documentation. He sought help from the FBCCI to ensure realizing money from borrowers and promised to formulate a checklist for the borrowers’ documentation.

SME Foundation’s Managing Director Safiqul Islam said banks should change their attitude towards the SMEs and they should “respond quickly” to disburse the stimulus money for the sector.

“It would be really good if we can reach out to the SMEs with Taka 20,000 crore fund. We will not be benefitted if the money does not reach the country’s cottage, micro and SME sector quickly,” he said.

Former FBCCI Presidents Kazi Akram Uddin Ahmed, Mir Nasir Hossain and Abdul Matlub Ahmad, Janata Bank Chairman Jamal Uddin Ahmed and its Managing Director Abdus Salam Azad, Sonali Bank’s Managing Director Akhteruzzaman Prodhan,

BRAC Bank’s Managing Director Selim R F Hossain, FBCCI’s Senior Vice President Muntakim Asharf, Director Salahuddin Alamgir, President of Bangladesh Plastic Goods Manufacturers and Exporters Association Jashim Uddin and Chairman of Policy Exchange Masrur Reaz, among others, took part in the discussion.

BSS/PR/MAK/MRU/2210hrs