Barua stresses need to raise loan disbursement to SMEs
Tuesday, 15 June 2010
FE Report
Industries Minister Dilip Barua Monday emphasised the need to increase loan disbursement to small and medium enterprises (SMEs) to turn Bangladesh into an industrially developed nation by 2021.
"The banks and financial institutions should change their traditional mind-set and introduce entrepreneur-friendly policy so that investors could get loan easily," he said this as chief guest while addressing the inaugural function of a workshop titled "SME Lending and Training Intervention" at the Bangladesh Bank conference centre."
The SME and special programmes department of Bangladesh Bank and SME sector development programme jointly organized the workshop.
He said, "Traditionally there has been no heavy industry because of lack of skilled entrepreneur, capital, experience and stable political and labour environment."
"Labour intensive industrialisation is the best option for economic security for a heavily populated country like Bangladesh", he said.
Bangladesh Bank Governor Atiur Rahman suggested banks and financial institutions for strengthening loan disbursement in rural areas to flourish sustainable SME.
He said, "Recently we have launched SME and special programmes department to work on loan policy making, monitoring and entrepreneur build up."
"We have already taken an SME loan policy and effective programmes for expansion and development of this sector."
He added that Bangladesh bank is focusing on loan disbursement in agriculture and SME sector to ensure inclusive growth.
He said, "The government is strongly committed to come out from the loan default culture. Loan defaulters disrupt the recycling of loans, at the same time provisioning requirement increases the interest rate."
He urged the banks and financial institutions to introduce cluster development policy for disbursing loan in SME sector.
The Governor said, "The government will announce the Industries Policy 2010 soon to reduce government policy related obstacle and to provide stimulus."
He said government is working to fulfill the target of 40 per cent contribution of industrial sector in the national income and increase employment generation by around 25 per cent within 2021.
Industries Minister Dilip Barua Monday emphasised the need to increase loan disbursement to small and medium enterprises (SMEs) to turn Bangladesh into an industrially developed nation by 2021.
"The banks and financial institutions should change their traditional mind-set and introduce entrepreneur-friendly policy so that investors could get loan easily," he said this as chief guest while addressing the inaugural function of a workshop titled "SME Lending and Training Intervention" at the Bangladesh Bank conference centre."
The SME and special programmes department of Bangladesh Bank and SME sector development programme jointly organized the workshop.
He said, "Traditionally there has been no heavy industry because of lack of skilled entrepreneur, capital, experience and stable political and labour environment."
"Labour intensive industrialisation is the best option for economic security for a heavily populated country like Bangladesh", he said.
Bangladesh Bank Governor Atiur Rahman suggested banks and financial institutions for strengthening loan disbursement in rural areas to flourish sustainable SME.
He said, "Recently we have launched SME and special programmes department to work on loan policy making, monitoring and entrepreneur build up."
"We have already taken an SME loan policy and effective programmes for expansion and development of this sector."
He added that Bangladesh bank is focusing on loan disbursement in agriculture and SME sector to ensure inclusive growth.
He said, "The government is strongly committed to come out from the loan default culture. Loan defaulters disrupt the recycling of loans, at the same time provisioning requirement increases the interest rate."
He urged the banks and financial institutions to introduce cluster development policy for disbursing loan in SME sector.
The Governor said, "The government will announce the Industries Policy 2010 soon to reduce government policy related obstacle and to provide stimulus."
He said government is working to fulfill the target of 40 per cent contribution of industrial sector in the national income and increase employment generation by around 25 per cent within 2021.