The Small and Medium Enterprise Foundation is learnt to have sought Tk 5.0 billion in endowment funds from government to enable it to undertake new projects in the sector considered economic backbone in countries like Bangladesh.
Officials said the SME Foundation sent Tuesday a letter to the ministry of finance (MoF) with a request for funds.
Signed by the foundation Managing Director, Dr. Eng Syed Md. Ihsanul Karim, the request letter makes a point that the activities of the facilitator of expansion of enterprises in this sector have expanded manifold. And it should be expanded further.
"But it is not possible to increase its programme and size for a lack of strengthening the financial structure of the foundation," the letter reads.
"Especially, the foundation will not be able take any new projects for entrepreneurs outside Dhaka city," it said.
The government provided Tk 1.0 billion each as a 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 despite having a great potential. As such, the foundation--for the fund crunch--lies hamstrung.
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