Sameer Sattar, President of the Dhaka Chamber of Commerce and Industry (DCCI), highlighted the challenges faced by small and medium enterprises (SMEs) in accessing the necessary funds for engaging in foreign trade.
Despite their potential to contribute significantly to boosting exports and alleviating foreign exchange shortages in the country, SMEs often encounter obstacles in securing financing, he underlined.
These concerns were raised during a seminar titled “Improving Export Capabilities of SMEs: Succeeding Globally upon LDC Graduation,” held in the capital Dhaka recently.
Sattar referred to a recent study conducted by the Bangladesh Institute of Bank Management on International Trade Finance and SMEs even as he pointed out that banks tend to inadequately cater to SMEs due to various reasons, including a lack of collateral, high-interest rates, absence of prior transaction records, elevated risk factors, and insufficient documentation.
In response to these challenges, Sattar proposed that the Bangladesh Bank, the country’s central bank, should instruct and monitor all commercial banks to establish dedicated units for serving SMEs at all their branches.
This would help ensure that SMEs receive better and more specialized financial services, he felt.
Additionally, he emphasised the importance of banks offering SME-tailored export financing solutions, such as credit insurance, export development funds, and working capital support.
These measures would assist SMEs in addressing the specific financial challenges associated with engaging in export activities, Sattar underlined.
