BB seeks Tk 5.0b as EEF for next fiscal from govt
Friday, 13 May 2011
Badrul Ahsan
Bangladesh Bank (BB) has sought Tk 5.0 billion as equity entrepreneurship fund (EEF) from the government to meet the increasing demand of the fund by the local entrepreneurs, a high official of EEF unit, Bangladesh Bank, said. According to a source, BB has included the proposal of the said fund in their annual budget proposal to the government for sanction in the next fiscal year (FY) 2011-2012. The new proposal of Tk. 5.0 billion for EEF fund is 66 per cent higher than that of the current FY and 133 per cent higher than that of the last FY. The annual budget of EEF for the current FY (2010-2011) is Tk 3.0 billion and it was Tk 2.0 billion in the last FY (2009-2010). "The government is very much positive about the disbursement of EEF fund as we have been successfully operating the fund since the year 2000," Executive Director of BB, Dasgupta Asim Kumar said. "There is no defaulter in loan repayment of the fund from the beginning till date, which proves its success," he added. "The demand has come forward following the large demand and success story of investment, management and recovery of the fund in the previous and current years," General Manager of Investment Corporation of Bangladesh (ICB), Md Iftikhar-uz-zaman said. "After signing the agency agreement with BB on June 1, 2009, ICB has analysed the whole process of loan sanctioning and has initiated some positive steps which have made the fund more popular to the entrepreneurs," Zaman said. The government has introduced the EEF fund in 2000-2001 financial year with a budget of Taka one billion naming it 'Equity Development Fund'. Later on, in 2001-2002 FY it was named as 'Equity Entrepreneurship Fund' (EEF). From the beginning till date, BB and ICB have sanctioned EEF worth Tk 13,835 million to 720 organisations. According to the rules of EEF fund, the entrepreneurs have to ensure the availability of 51 per cent of total project cost and then the government will provide rest 49 per cent as loan. Government provides the EEF fund on profit sharing basis for a period of eight years. The entrepreneurs would have to buy back the government's share in four steps within this time. Only IT and selected agricultural sectors were entitled to receive the fund until 2009, but later on the authority had enlarged the area of funding. According to the information of ICB, some 20 thousand people have been engaged directly or indirectly in the projects, funded through EEF scheme so far.
Bangladesh Bank (BB) has sought Tk 5.0 billion as equity entrepreneurship fund (EEF) from the government to meet the increasing demand of the fund by the local entrepreneurs, a high official of EEF unit, Bangladesh Bank, said. According to a source, BB has included the proposal of the said fund in their annual budget proposal to the government for sanction in the next fiscal year (FY) 2011-2012. The new proposal of Tk. 5.0 billion for EEF fund is 66 per cent higher than that of the current FY and 133 per cent higher than that of the last FY. The annual budget of EEF for the current FY (2010-2011) is Tk 3.0 billion and it was Tk 2.0 billion in the last FY (2009-2010). "The government is very much positive about the disbursement of EEF fund as we have been successfully operating the fund since the year 2000," Executive Director of BB, Dasgupta Asim Kumar said. "There is no defaulter in loan repayment of the fund from the beginning till date, which proves its success," he added. "The demand has come forward following the large demand and success story of investment, management and recovery of the fund in the previous and current years," General Manager of Investment Corporation of Bangladesh (ICB), Md Iftikhar-uz-zaman said. "After signing the agency agreement with BB on June 1, 2009, ICB has analysed the whole process of loan sanctioning and has initiated some positive steps which have made the fund more popular to the entrepreneurs," Zaman said. The government has introduced the EEF fund in 2000-2001 financial year with a budget of Taka one billion naming it 'Equity Development Fund'. Later on, in 2001-2002 FY it was named as 'Equity Entrepreneurship Fund' (EEF). From the beginning till date, BB and ICB have sanctioned EEF worth Tk 13,835 million to 720 organisations. According to the rules of EEF fund, the entrepreneurs have to ensure the availability of 51 per cent of total project cost and then the government will provide rest 49 per cent as loan. Government provides the EEF fund on profit sharing basis for a period of eight years. The entrepreneurs would have to buy back the government's share in four steps within this time. Only IT and selected agricultural sectors were entitled to receive the fund until 2009, but later on the authority had enlarged the area of funding. According to the information of ICB, some 20 thousand people have been engaged directly or indirectly in the projects, funded through EEF scheme so far.