Proper utilisation of EEF
Tuesday, 25 March 2008
BANGLADESH has taken a praiseworthy initiative to properly utilise the facilities under the Equity Entrepreneurs Fund (EEF). The central bank is paying attention to information technology (IT) and software development in the country. According to a newspaper report, the bank is likely to launch a drive to create awareness so that experienced and potential IT entrepreneurs can take advantage of the fund to set up software companies. The Bangladesh Bank (BB) is reportedly planning to contact IT experts, bankers, representatives of BASIS and the computer council to get ideas to motivate the IT entrepreneurs.
The EEF was established to provide financial support to the entrepreneurs, needing the funds to start their businesses. Initially, the fund was designed to help small and medium enterprises, particularly women. But the fund had to be wound up due to alleged irregularities in sanctioning loans. The BB suspended Tk 1.0 billion fund in 2005. It remained so until last year.
Under the fresh initiative, the central bank is now trying to identify limitations and problems that the entrepreneurs face in obtaining financial support. Later, it would also hold consultations with the stakeholders.
Dissemination of information to the potential entrepreneurs is needed more, so that they can get the credit without hassles. After putting the fund on hold for sometime, the BB sought proposals for its revival from the IT entrepreneurs a four months back.
Monitoring of lending operation as well as loan recovery is necessary to ensure proper utilisation of the fund. It would not be enough for the central bank to sit idle after issuing instructions to the scheduled banks and the non-banking financial institutions to restart the credit operations.
Kazi Asif Karim
Naya Paltan, Dhaka
The EEF was established to provide financial support to the entrepreneurs, needing the funds to start their businesses. Initially, the fund was designed to help small and medium enterprises, particularly women. But the fund had to be wound up due to alleged irregularities in sanctioning loans. The BB suspended Tk 1.0 billion fund in 2005. It remained so until last year.
Under the fresh initiative, the central bank is now trying to identify limitations and problems that the entrepreneurs face in obtaining financial support. Later, it would also hold consultations with the stakeholders.
Dissemination of information to the potential entrepreneurs is needed more, so that they can get the credit without hassles. After putting the fund on hold for sometime, the BB sought proposals for its revival from the IT entrepreneurs a four months back.
Monitoring of lending operation as well as loan recovery is necessary to ensure proper utilisation of the fund. It would not be enough for the central bank to sit idle after issuing instructions to the scheduled banks and the non-banking financial institutions to restart the credit operations.
Kazi Asif Karim
Naya Paltan, Dhaka