Credit Guarantee Department   

Name & Designation	Email	Telephone	Fax
Nurun NaharDeputy Governor	nurun.nahar@bb.org.bd	880-2-9530401(O) 01712625282(M)	--
Md. Shakhawat HossainExecutive Director	sakhawat.hossain81@bb.org.bd	880-2-9530409(O) 01930904615(M)	--
Md. Shabbirul Alam ChowdhuryDirector (CGD)	shabbirul.chowdhury@bb.org.bd	880-2-9530179(O) 01711735515(M)

Overview of Credit Guarantee Department
Access to finance for Cottage, Micro, Small and Medium Enterprises (CMSMEs), agro- product processing enterprises, women entrepreneurs, landless farmers and marginalized people is crucial for overall sustainable economic development of Bangladesh. However, the lack of collateral remains a major challenge for these sectors and marginalized groups in accessing institutional loans. Credit Guarantee is an internationally recognized method that helps to overcome such limitation of supportive collaterals in obtaining institutional loans for target groups.
Addressing this challenge, Bangladesh Bank initially launched the Credit Guarantee Scheme (CGS) in July 2020 to encourage banks and Non-Bank Financial Institutions (NBFIs) to provide loans to target groups. Credit Guarantee Department (CGD) is formed on 4 July, 2022 to address the guarantee need of target group under refinance/pre-finance schemes. Guarantee is provided to the borrower through Participating Financial Institution (PFI). The department was originated from Credit Guarantee Scheme Unit (CGS Unit) established on August 29, 2019, under SME & Special Programmes Department of Bangladesh Bank. The Government allocated a BDT 20 billion fund for the scheme, included in the 20th Financial Stimulus Package. The Primary goal was to safeguard employment and sustain CMSE business adversely affected by the pandemic.
Major Functions of Credit Guarantee Department

1. Formulation and issuance of necessary policy, regulations, guidelines, operation manuals, circular/circular letters etc. for different credit guarantee schemes/programs.
2. Formulation and review of necessary selection criteria and eligibility criteria for participating banks and financial institutions.
3. Preparation and dissemination of periodic reports on various aspects of Credit Guarantee Schemes for the stakeholders.
4. Introduction and implementation of upgraded risk management practices in issuance of credit guarantees.
5. Formulation and up-gradation of an efficient, clearly documented and transparent claim management process.
6. Monitoring and Supervision (on-site and off-site) of the guaranteed loans of PFI and loan collection efforts.
7. Communication and coordination with stakeholders, i.e. Ministries, Government Agencies & Offices, Development Partners, Banks and Financial Institutions.
8. Automation of Credit Guarantee providing operation.
9. Awareness and capacity building programs for stakeholders.
10. Explore new opportunity to expand the beneficiary of credit guarantee.