JDPC plans Tk 450m credit for jute entrepreneurs
Saturday, 1 August 2009
Monira Begum Munni
Jute Diversification Promotion Centre (JDPC) has planned to launch a Tk 450-million credit scheme for helping the country's jute entrepreneurs diversify their product base, official sources said.
Under the initiative, the credit will be disbursed among the aspiring jute-goods producers through banking channel, they mentioned.
"Negotiations are on with some of the local commercial banks for integrating them with our special credit programme," a JDPC senior official told the FE.
According to the scheme, the JDPC will keep Tk 150 million as fixed deposit with at least three banks for running the credit programme.
"We will keep the said fund in banks with the condition that they will provide loans to the entrepreneurs at least three times more than the deposited amount," said the official.
He, however, said the JDPC will provide around 20 per cent cash of the default loans.
"Already two commercial banks have responded positively to our proposal," he said expressing the hope that some more banks would join the project.
"We have also a plan to expand our credit scheme through most of the local commercial and specialised banks in future," he said.
The official also said the JDPC has succeeded in its first phase of the project launched in 2002 for promotion of diversified jute products in the country.
The government has stepped up efforts by adopting projects through Jute Diversification Promotion Centre under the ministry, he said.
The key objective of launching the project was to help boost the country's export earnings from value-added jute goods.
"Seven industrial projects have been set up and they have gone into production and nine more are under construction" JDPC Executive Director ABM Abdullah told the FE.
Jute Diversification Promotion Centre (JDPC) has planned to launch a Tk 450-million credit scheme for helping the country's jute entrepreneurs diversify their product base, official sources said.
Under the initiative, the credit will be disbursed among the aspiring jute-goods producers through banking channel, they mentioned.
"Negotiations are on with some of the local commercial banks for integrating them with our special credit programme," a JDPC senior official told the FE.
According to the scheme, the JDPC will keep Tk 150 million as fixed deposit with at least three banks for running the credit programme.
"We will keep the said fund in banks with the condition that they will provide loans to the entrepreneurs at least three times more than the deposited amount," said the official.
He, however, said the JDPC will provide around 20 per cent cash of the default loans.
"Already two commercial banks have responded positively to our proposal," he said expressing the hope that some more banks would join the project.
"We have also a plan to expand our credit scheme through most of the local commercial and specialised banks in future," he said.
The official also said the JDPC has succeeded in its first phase of the project launched in 2002 for promotion of diversified jute products in the country.
The government has stepped up efforts by adopting projects through Jute Diversification Promotion Centre under the ministry, he said.
The key objective of launching the project was to help boost the country's export earnings from value-added jute goods.
"Seven industrial projects have been set up and they have gone into production and nine more are under construction" JDPC Executive Director ABM Abdullah told the FE.