Many a bank in Bangladesh are dreading to lend to the cottage, micro, small and medium enterprises (CMSMEs), already burdened with significant amount of default loans.
According to media reports, this claim was made by many participants who took part in a recent seminar at the National SME Product Fair in the capital city Dhaka.
Speaking at the event, Managing Director of Mutual Trust Bank Syed Mahbubur Rahman reportedly underlined that at the moment, defaulted loans of banks in Bangladesh are so high that banks are now afraid to give loans to the small entrepreneurs.
“How will we lend anyone? We have lost confidence,” reportedly said Mahbubur even as SME Foundation Chairperson Md Masudur Rahman on his part underlined,
“The struggle for small-scale entrepreneurs to get bank loans in the current situation has increased considerably than in the past.”
Mounting default loans by large borrowers may be one of the key reasons, reportedly felt Md Masudur Rahman.
