Loan disbursements to Cottage, Micro, Small, and Medium Enterprises (CMSMEs) in Bangladesh have decreased by Tk11,543 crore or 19.04% in the January-March quarter due to the ongoing economic slowdown and liquidity crisis in the banking sector. Banks and financial institutions disbursed Tk49,068 crore in the first quarter of this year, down from Tk60,611 crore in the previous quarter. The decline is attributed to the overall decrease in imports, which has forced banks to focus on sectors under pressure, resulting in reduced loan disbursements to CMSMEs. While bankers hope to meet the loan disbursement target in the remaining two quarters of the year, entrepreneurs like Shahadat Hossain have faced difficulties obtaining loans, despite a strong business reputation. The increasing amount of non-performing CMSME loans and liquidity crises in some banks have further contributed to the decline. The central bank’s refinance scheme aims to boost CMSME sector liquidity, but challenges remain in achieving the desired loan disbursement levels.
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