ICB to expand areas of EEF funding
Sunday, 22 May 2011
Badrul Ahsan
Investment Corporation of Bangladesh (ICB) has planned to expand the areas of funding under the equity entrepreneurship fund (EEF) to boost growth of the country's growing agriculture and IT sectors, an ICB high official said. The state-owned financial institution identified solar energy, composite dairy, fruits and vegetables processing and preserving, betel nut production and preservation, apiculture and honey preservation, turtle hatchery and cultivation etc as the potential areas of the agro-based sector, to provide loan as it deems the country's growth at the grass-roots level will be accelerated with proper utilisation of the fund. Besides, the ICB has also identified hardware manufacturing and call centre of the IT sector as potential destinations of the EEF. "We have found these prospective fields for lending after consultation with the experts and interaction with the stakeholders," General Manager of ICB Md Iftikhar-uz-zaman said. According to the sources at ICB, after signing the agency agreement with Bangladesh Bank (BB) on June 1, 2009, ICB has analysed the area of funding of the EEF fund and discussed it with the stakeholders and the grass-roots people. Mr Iftikhar said the decision has come following the immense demand and success story of investment, management and recovery of the fund in the previous and current years. "Of them, vegetables processing and preserving, betel nut production and preservation, apiculture and honey preservation, turtle hatchery and cultivation, hardware manufacturing and call centre etc have already been included for funding," Iftikhar told the FE. "Solar energy, composite dairy and others are under process of listing for funding," he added. "There is no defaulter in repayment of the fund from the beginning till date, which proves its success," he said. The government introduced the EEF fund in 2000-2001 financial year with a budget of Tk 1.0 billion naming it 'Equity Development Fund'. Later on, in FY 2001-2002 it was named as 'Equity Entrepreneurship Fund' (EEF). From the beginning till date, ICB with approval from the central bank has sanctioned EEF fund worth Tk 13.835 billion to 720 organisations. According to the rules of EEF fund, the entrepreneurs concerned are required to make available 51 per cent of the total project cost and then the government will provide the rest 49 per cent as equity. The 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 timeframe. "The stakeholders will never want to invite their own troubles by being an intentional defaulter as the authority can anytime dispose of its share," Iftikhar said. "Non-resident Bangladeshis (NRBs), freedom fighters, women entrepreneurs, tribal entrepreneurs and the people of monga-affected areas have been getting preferences for EEF funding," sources said.
Investment Corporation of Bangladesh (ICB) has planned to expand the areas of funding under the equity entrepreneurship fund (EEF) to boost growth of the country's growing agriculture and IT sectors, an ICB high official said. The state-owned financial institution identified solar energy, composite dairy, fruits and vegetables processing and preserving, betel nut production and preservation, apiculture and honey preservation, turtle hatchery and cultivation etc as the potential areas of the agro-based sector, to provide loan as it deems the country's growth at the grass-roots level will be accelerated with proper utilisation of the fund. Besides, the ICB has also identified hardware manufacturing and call centre of the IT sector as potential destinations of the EEF. "We have found these prospective fields for lending after consultation with the experts and interaction with the stakeholders," General Manager of ICB Md Iftikhar-uz-zaman said. According to the sources at ICB, after signing the agency agreement with Bangladesh Bank (BB) on June 1, 2009, ICB has analysed the area of funding of the EEF fund and discussed it with the stakeholders and the grass-roots people. Mr Iftikhar said the decision has come following the immense demand and success story of investment, management and recovery of the fund in the previous and current years. "Of them, vegetables processing and preserving, betel nut production and preservation, apiculture and honey preservation, turtle hatchery and cultivation, hardware manufacturing and call centre etc have already been included for funding," Iftikhar told the FE. "Solar energy, composite dairy and others are under process of listing for funding," he added. "There is no defaulter in repayment of the fund from the beginning till date, which proves its success," he said. The government introduced the EEF fund in 2000-2001 financial year with a budget of Tk 1.0 billion naming it 'Equity Development Fund'. Later on, in FY 2001-2002 it was named as 'Equity Entrepreneurship Fund' (EEF). From the beginning till date, ICB with approval from the central bank has sanctioned EEF fund worth Tk 13.835 billion to 720 organisations. According to the rules of EEF fund, the entrepreneurs concerned are required to make available 51 per cent of the total project cost and then the government will provide the rest 49 per cent as equity. The 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 timeframe. "The stakeholders will never want to invite their own troubles by being an intentional defaulter as the authority can anytime dispose of its share," Iftikhar said. "Non-resident Bangladeshis (NRBs), freedom fighters, women entrepreneurs, tribal entrepreneurs and the people of monga-affected areas have been getting preferences for EEF funding," sources said.