CA spells out 4-point measure for fair lending to SME sector
Thursday, 14 February 2008
Chief Adviser (CA) Fakhruddin Ahmed Wednesday spelt out a four-point measure for fair lending to SME sector, with a special focus on helping female entrepreneurs, for flourishing small and medium enterprises in the country, reports UNB.
He advised the commercial banks and financial institutions to ease lending procedure and reduce the existing interest rates for small women entrepreneurs.
Inaugurating the day-long 2nd National Women SME Entrepreneurs Conference 2008, Fakhruddin, an economist and former governor of Bangladesh Bank, put forward the four steps for creating a fair and sustainable loan system in the Small and Medium Enterprise (SME) sector.
The dos are: reduce the existing rates of bank interest, set up SME unit or desk in commercial banks and financial institutions to make loan-disbursement procedure quicker and simpler and incorporate business strategy for providing SME loan, create woman-friendly environment in banks and financial institutions, and fix SME-friendly tax, duty and VAT structure.
The head of caretaker government said it is very essential today to consolidate and coordinate women's participation in main stream of the country's economy. And the present government is very keen and active on this matter.
The policymakers have to know the impediments facing women during participation in industrialisation and formulate suitable policy guidelines, if necessary, he told the function.
'Empowering Women Entrepreneurs towards a Shared Economic Growth' was the theme of the conference organised by the SME Foundation at a city hotel.
Special Assistant to Chief Adviser in charge of Industries Ministry Mahbub Jamil, Bangladesh Bank Governor Salehuddin Ahmed, Asian Development Bank country director Hua Du, managing director of the SME Foundation and Secretary in Charge of Food and Disaster Management Ministry M Ayub Mia and convenor of the National SME Women Entrepreneurs Forum Pervin Mahmud also spoke at the function, presided over by SME Foundation chairperson Abdul Muyeed Chowdhury.
The Chief Adviser lamented that though a good number of women of the country set example of success as entrepreneur, they have to face various problems during investment in industry.
Specially, he pointed out, showing collateral for getting bank loan, high-rated bank interest, inadequate market information, existing management culture, and, many times, family responsibilities create barriers to their initiatives.
He urged the commercial banks and financial institutions to formulate gender-sensitive conditions and form a special fund for women entrepreneurs.
He said the government has given importance to labour- intensive small and medium industry to accelerate the economic growth through poverty alleviation and reducing unemployment.
He advised the commercial banks and financial institutions to ease lending procedure and reduce the existing interest rates for small women entrepreneurs.
Inaugurating the day-long 2nd National Women SME Entrepreneurs Conference 2008, Fakhruddin, an economist and former governor of Bangladesh Bank, put forward the four steps for creating a fair and sustainable loan system in the Small and Medium Enterprise (SME) sector.
The dos are: reduce the existing rates of bank interest, set up SME unit or desk in commercial banks and financial institutions to make loan-disbursement procedure quicker and simpler and incorporate business strategy for providing SME loan, create woman-friendly environment in banks and financial institutions, and fix SME-friendly tax, duty and VAT structure.
The head of caretaker government said it is very essential today to consolidate and coordinate women's participation in main stream of the country's economy. And the present government is very keen and active on this matter.
The policymakers have to know the impediments facing women during participation in industrialisation and formulate suitable policy guidelines, if necessary, he told the function.
'Empowering Women Entrepreneurs towards a Shared Economic Growth' was the theme of the conference organised by the SME Foundation at a city hotel.
Special Assistant to Chief Adviser in charge of Industries Ministry Mahbub Jamil, Bangladesh Bank Governor Salehuddin Ahmed, Asian Development Bank country director Hua Du, managing director of the SME Foundation and Secretary in Charge of Food and Disaster Management Ministry M Ayub Mia and convenor of the National SME Women Entrepreneurs Forum Pervin Mahmud also spoke at the function, presided over by SME Foundation chairperson Abdul Muyeed Chowdhury.
The Chief Adviser lamented that though a good number of women of the country set example of success as entrepreneur, they have to face various problems during investment in industry.
Specially, he pointed out, showing collateral for getting bank loan, high-rated bank interest, inadequate market information, existing management culture, and, many times, family responsibilities create barriers to their initiatives.
He urged the commercial banks and financial institutions to formulate gender-sensitive conditions and form a special fund for women entrepreneurs.
He said the government has given importance to labour- intensive small and medium industry to accelerate the economic growth through poverty alleviation and reducing unemployment.