Economic Reporter :
The Dhaka Chamber of Commerce and Industry (DCCI) has urged the government to utilize the State Owned Commercial Banks (SOCBs) to disburse the stimulus funds, particularly for the Micro, Small and Medium Enterprises (MSMEs).
The DCCI came with the proposal when its leaders had a discussion with Finance Minister A H M Mustafa Kamal on the current economic situation in the country in the wake of coronavirus pandemic, said a DCCI press release.
President of DCCI Shams Mahmud appreciated the proactive steps taken by the Prime Minister and the Finance Ministry in announcing the stimulus packages, especially for MSMEs.He mentioned that in spite of the measures announced by the government, the cottage and MSMEs may face hurdles in getting required access to finance from banks under the packages.
The DCCI president said most of the cottage, SMEs, MSMEs and cash-transaction-based traders may be deprived in getting stimulus funds from the banks because of the requirements of having loans as well as due to lack of good relations with the banks which large businesses always maintain.
The DCCI proposed the Finance Ministry to chalk out a plan for a considered gradual opening up of different business sectors.
The DCCI suggested that external international financial organizations need to be pursued to bring in low cost funds to inject into the stimulus packages.
The discussion between the Finance Minister and DCCI also covered the issues of food security for the vulnerable groups and financial assistance to the workers in the informal sectors.
The DCCI suggested that new MSMEs with an operational time of maximum two years should be waived business license renewal fees, utility bills, other charges related to bank and import and export related port charges.
They also need to be offered business recovery fund as working capital under re-financing scheme for two years with one percent interest rate. Since keeping social distance need to be continued now, e-commerce based MSMEs are playing vital role in this crisis moment.
The DCCI president thus proposed to provide VAT and tax exemptions or cash incentives to the MSMEs to engage more in e-commerce ecosystem.
Informal businesses like floating traders, hawkers, floating shops, grocers and sole traders need to be brought under the social safety network and low-cost survival business recovery emergency fund can be given for their survival.
The DCCI president also thanked the Finance Minister and the efforts of the ministry during this unprecedented time and taking the time to engage and take suggestions from all stakeholders.
The Finance Minister underscored the measures taken by the government and said that the Finance Ministry has adopted a policy for bringing out an inclusive, transparent financial stimulus package with people from all sectors in mind.
“The Finance Ministry is also engaging with foreign development partners in order to bring in funds at a low cost to further boost the stimulus packages,” he added.
The Finance Minister mentioned the programs undertaken by the government to ensure food security.
All these measures are being undertaken in a transparent way with clear identifications to ensure transparency, he said.
The Dhaka Chamber of Commerce and Industry (DCCI) has urged the government to utilize the State Owned Commercial Banks (SOCBs) to disburse the stimulus funds, particularly for the Micro, Small and Medium Enterprises (MSMEs).
The DCCI came with the proposal when its leaders had a discussion with Finance Minister A H M Mustafa Kamal on the current economic situation in the country in the wake of coronavirus pandemic, said a DCCI press release.
President of DCCI Shams Mahmud appreciated the proactive steps taken by the Prime Minister and the Finance Ministry in announcing the stimulus packages, especially for MSMEs.He mentioned that in spite of the measures announced by the government, the cottage and MSMEs may face hurdles in getting required access to finance from banks under the packages.
The DCCI president said most of the cottage, SMEs, MSMEs and cash-transaction-based traders may be deprived in getting stimulus funds from the banks because of the requirements of having loans as well as due to lack of good relations with the banks which large businesses always maintain.
The DCCI proposed the Finance Ministry to chalk out a plan for a considered gradual opening up of different business sectors.
The DCCI suggested that external international financial organizations need to be pursued to bring in low cost funds to inject into the stimulus packages.
The discussion between the Finance Minister and DCCI also covered the issues of food security for the vulnerable groups and financial assistance to the workers in the informal sectors.
The DCCI suggested that new MSMEs with an operational time of maximum two years should be waived business license renewal fees, utility bills, other charges related to bank and import and export related port charges.
They also need to be offered business recovery fund as working capital under re-financing scheme for two years with one percent interest rate. Since keeping social distance need to be continued now, e-commerce based MSMEs are playing vital role in this crisis moment.
The DCCI president thus proposed to provide VAT and tax exemptions or cash incentives to the MSMEs to engage more in e-commerce ecosystem.
Informal businesses like floating traders, hawkers, floating shops, grocers and sole traders need to be brought under the social safety network and low-cost survival business recovery emergency fund can be given for their survival.
The DCCI president also thanked the Finance Minister and the efforts of the ministry during this unprecedented time and taking the time to engage and take suggestions from all stakeholders.
The Finance Minister underscored the measures taken by the government and said that the Finance Ministry has adopted a policy for bringing out an inclusive, transparent financial stimulus package with people from all sectors in mind.
“The Finance Ministry is also engaging with foreign development partners in order to bring in funds at a low cost to further boost the stimulus packages,” he added.
The Finance Minister mentioned the programs undertaken by the government to ensure food security.
All these measures are being undertaken in a transparent way with clear identifications to ensure transparency, he said.
