SMEs not getting adequate financing for foreign trade: DCCI president

Small and medium enterprises (SMEs) are not getting adequate funds needed to carry out foreign trade despite having the potential to help the country boost exports and overcome the foreign exchange shortage, said Sameer Sattar, president of the Dhaka Chamber of Commerce and Industry (DCCI).

He made the comments at a seminar styled "Improving Export Capabilities of SMEs: Succeeding Globally upon LDC Graduation" at the Westin Dhaka today.

Referring to a recent study of the Bangladesh Institute of Bank Management on International Trade Finance and SME, Sattar said SMEs are not often properly catered to by banks due to a lack of collateral, high-interest rates, lack of previous transaction records, high risk, and lack of sufficient documents.

"The Bangladesh Bank may instruct and monitor all commercial banks to ensure the establishment of a cell for the SMEs at all branches of banks so that SMEs get better service."

"Besides, banks need to provide SME-tailored export financing like credit insurance, export development fund and working capital to help them address export-related financial challenges."