Some 22 banks and nine non-banking financial institutions (FIs) joined a refinancing scheme of the Bangladesh Bank (BB) Sunday for creation of new and young entrepreneurs in the country and make fund available for them.
The central bank recently launched the Tk 1.0 billion scheme, under which the banks and NBFIs will disburse loan to small initiatives of manufacturing and service sectors, which are labour intensive, export oriented and import alternative.
Top executives of the 22 banks and NBFIs signed a participatory deal with the central bank at BB head-office in the city.
BB Governor Dr Atiur Rahman was present in the programme as the chief guest. He said: "The standard and environment of SME banking service is yet to reach the expected level. Many changes have taken place in SME sector, and we have to coordinate to bring SME banking to the expected level."
"Collateral is a major obstacle on the way to be a new entrepreneur. We have to work together to remove the obstacle to create new entrepreneurs."
"SME and agriculture sectors helped us to tackle the global financial meltdown. So we should find new entrepreneurs (of these sectors) actively."
"Getting honest and committed entrepreneurs is very tough. But women entrepreneurs are very committed to return their loans timely," the BB Governor said.
He also said the public and private sectors as well as foreign labour markets are not able to meet the job demands for increasing population in the country.
"To tackle this challenge we have to take effective policy, strategy and programme. The public and private sectors have to create more job opportunities," he added.
The initial fund under the BB refinancing scheme is Tk 1.0 billion. Any new and young entrepreneur aged between 18 to 45 years will get working capital and maximum collateral-free term loan amounting to Tk 1.0 million at 10 per cent interest and maximum loan of Tk 2.5 million with collateral.
Dhaka Chamber of Commerce and Industry (DCCI) former president Sabur Khan and president Md Shahjahan Khan, and Bangladesh Bank deputy governor Md Abul Quasem and SME and Special Programmes Department general manager Masum Patwary were present, among others, at the signing ceremony.
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