Rumi Akter Polly of DOT
[2] The government announced 19 incentive packages to revive the economy. Apart from the export sector, separate allocations are given to small entrepreneurs, reports jamuna.tv.[3] Even then, there is not much momentum in private loans. Although there is no cash crunch in the banking sector. Although big customers get loans, small entrepreneurs are not getting much response.[4] Bankers said COVID-19 has reduced demand for the product in the market; that is why many people are not interested in taking money. Banks are not interested in lending to risky sectors as they have set a single interest rate.[5] Entrepreneurs in the industrial and service sectors receive incentives, but in most cases, small entrepreneurs are deprived. According to them, the bankers are creating various complications for not giving loans.In addition to subsidizing loans, Bangladesh Bank is refinancing in most cases. Even then, the growth of debt in the private sector is not increasing much.
At the end of August, the growth was less than 9 percent. Bankers also say there is no cash crunch. If the situation is normal, the amount of loan will increase.
Analysts said bankers are reluctant to lend to small entrepreneurs due to high oversight costs. Analysts believe that many small entrepreneurs will lose business if the money supply does not increase.