Industries Ministry seeks Tk1,100cr seed money for small entrepreneurs

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The ministry took the initiative taking into consideration the sufferings of the micro, small and cottage industries

Under the stimulus package announced by the federal government for SME sector, Industries Ministry has sought Tk1,100 crore as seed money for providing loan assist with the micro and small entrepreneurs beyond your bank operating system, reports BSS.

“With the seed money, the SME Foundation will implement financing program of Tk500 crore and Bangladesh Small and Cottage Industries Corporation (BSCIC) may also operate another programme of Tk600 crore for micro and small entrepreneurs,” said an Industries Ministry news release issued yesterday.

The ministry has taken the initiative taking into consideration the sufferings of the micro, small and cottage industries due to Covid-19 outbreak.

To the end, the Industries Ministry sent a letter to the Finance Ministry on April 30.

In line with the letter, Bangladesh Bank issued a circular on April 13 to disburse the stimulus package of Tk20,000 crore, announced by the Prime Minister on April 5 for the SME sector.

According to the circular, commercial banks will conduct lending activities based on bank-customer relationship and the borrowers are certain to get special benefits in the event of taking loans.

The letter further said an 11-member committee headed by yet another secretary of the Ministry of Industries was formed on April 18 for formulating effective steps and tips in this regard.

At the first meeting of the committee it had been informed that at the moment, about 15% entrepreneurs in small and cottage industries are employing loans from banks.

The rest of the 85% of entrepreneurs aren't involved with formal lending activities rather than familiar with maintaining formal accounts in conducting business activities.

At the meeting, it had been decided to run a special loan program through SME Foundation and BSCIC by collecting seed money on an urgent basis for each one of these micro and small entrepreneurs.

So, the Industries Ministry sent a letter to the Finance Ministry on April 30 to allocate a complete of Tk1,100 crore as seed money in favor of SME Foundation and BSCIC for the implementation of the special loan program.
Source: https://www.dhakatribune.com

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