Tk 2.0b sought for SME foundation

FE Report
The ministry of industries (MoI) has sought Tk 2.0 billion in endowment funds from the government to help the Small and Medium Enterprise (SME) Foundation reach beyond Dhaka city.
Industries secretary recently sent a letter to the senior secretary of the ministry of finance seeking the fund.
New, women and budding entrepreneurs do not often get credit facility from the banks and financial institutions, which impede development of the SME sector. The foundation provides loan facility to the entrepreneurs on easy term and at lower rate of interest without collateral.   
Earlier, the SME Foundation had sought Tk 5.0 billion in endowment funds from the finance ministry.
"It is not possible to increase the programmes and size for lack of strong financial structure of the foundation," an official of the foundation told the FE Saturday.
Especially, the foundation will not be able take up any new projects for entrepreneurs outside Dhaka city, he said.
The government provided Tk 1.0 billion each as financial assistance to the foundation for the financial year 2007-08 and 2008-09.
Presently, Tk 2.0 billion remains with the foundation fund. There is no additional fund other than the government-provided funds.
On the other hand, interest earning from fixed deposit receipt (FDR) has declined due to the lowering of the rate of interest by the banks and financial institutions recently, sources said.
The SME Foundation is not able to expand its activities due to fund constraints despite having great potential.
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