Tk 20b low-interest loan to boost employment
FE REPORT | Friday, 12 June 2020
A low-interest loan facility worth Tk 20 billion has been proposed in the budget for fiscal year 2020-21, aiming to generate employment and support small and medium entrepreneurs.
As per the budget proposals, the government would expand the range of distribution of low-interest loans to include more people from different walks of lives.
Finance Minister AHM Mustafa Kamal disclosed this while presenting the 49th budget in parliament on Thursday.
"We will expand the system of distribution of low-interest loans to poor village farmers, returned expatriate workers and trained and unemployed youths for their engagement in business and self-employment activities in the rural areas in agriculture, agriculture-related production and services, small businesses and small and cottage industries," he said.
To support this initiative, a low-interest loan facility of Tk 20 billion has been created, which will be distributed through Palli Sanchay Bank, Probashi Kallyan Bank, Karmasangsthan Bank and Palli Karma-Sahayak Foundation (PKSF), he added.
"The government, for this purpose, will provide Tk 5.0 billion to each of these institutes as capital, from which they will distribute low-interest loans to eligible entrepreneurs under specific programmes," said the minister.
In addition to this initiative, the government is currently implementing various programmes with a view to creating jobs, he added.
"For instance, to create efficient workforce by providing training, steps are being taken to establish new technical training centres in different districts across the country," said the minister.
The government is also working to boost skills development, which is essential for employment generation, he noted.
The government has also been implementing the 'National Service Programme' through the Department of Youth Development to generate employment for educated but unemployed youths, he said.
Under this programme, 2,29,737 youngsters were given training, and temporary employment was generated for 2,27,402 of them, the minister said.