SME Endowment Fund proposed to be doubled
FE Report | Tuesday, 10 June 2008
The government in its budget for fiscal 2008-09 has proposed to double the SME Endowment Fund to Tk 2.0 billion in the next fiscal year from existing Tk 1.0 billion aiming to promote small and medium enterprises across the country.
"In recognition of its great importance, a further allocation of Tk 1.0 billion has been proposed in the budget for fiscal year 2008-09," Finance Adviser Dr. Mirza Azizul Islam said in his budget speech Monday.
"The government allocated Tk 1.0 billion to the SME Endowment Fund in fiscal year 2007-08 to provide required assistance for the growth and development of SME sector in the country,"
Besides, funding for the SME Refinancing Scheme of the Bangladesh Bank (BB) has been enhanced from Tk 3.0 billion to Tk 5.0 billion.
On June 3 last, the board of directors of the central bank approved the enhancement of allocation at a meeting with BB Governor Salehuddin Ahmed in the chair.
An SME Foundation has been established to implement the SME policies and strategies of the government and facilitate required reforms in this sector, the finance adviser said.
He also said governed by a Board of Directors based on the principle of public-private partnership, the foundation comprises experts from the public and private sectors.
"The Foundation is providing recommendations to the government to assist it in identifying problems in the SME sector and in determining strategies for their resolution," the adviser said.
To promote women entrepreneurship, he said the SME Foundation has constituted a forum titled National Women Entrepreneurs Forum.
"The Foundation has been asked to commence its credit operation to provide credit to the SME entrepreneurs at a low rate of interest," the adviser added.
Besides, a programme has been taken up to create a database with the data inputs derived from a nationwide survey. The Foundation provided assistance to enhance efficiency of about 5,000 entrepreneurs in the last year.
"SME helpline centres will be established in each district across the country," the adviser noted.
"In recognition of its great importance, a further allocation of Tk 1.0 billion has been proposed in the budget for fiscal year 2008-09," Finance Adviser Dr. Mirza Azizul Islam said in his budget speech Monday.
"The government allocated Tk 1.0 billion to the SME Endowment Fund in fiscal year 2007-08 to provide required assistance for the growth and development of SME sector in the country,"
Besides, funding for the SME Refinancing Scheme of the Bangladesh Bank (BB) has been enhanced from Tk 3.0 billion to Tk 5.0 billion.
On June 3 last, the board of directors of the central bank approved the enhancement of allocation at a meeting with BB Governor Salehuddin Ahmed in the chair.
An SME Foundation has been established to implement the SME policies and strategies of the government and facilitate required reforms in this sector, the finance adviser said.
He also said governed by a Board of Directors based on the principle of public-private partnership, the foundation comprises experts from the public and private sectors.
"The Foundation is providing recommendations to the government to assist it in identifying problems in the SME sector and in determining strategies for their resolution," the adviser said.
To promote women entrepreneurship, he said the SME Foundation has constituted a forum titled National Women Entrepreneurs Forum.
"The Foundation has been asked to commence its credit operation to provide credit to the SME entrepreneurs at a low rate of interest," the adviser added.
Besides, a programme has been taken up to create a database with the data inputs derived from a nationwide survey. The Foundation provided assistance to enhance efficiency of about 5,000 entrepreneurs in the last year.
"SME helpline centres will be established in each district across the country," the adviser noted.