NRBs, World Bank, ADB, European Union to give funds

Bangladesh Bank is going to introduce four new refinance and pre-finance schemes of Tk 1,000 crore for small and medium entrepreneurs in a bid to boost the country’s SME sector, said officials.
A BB official told New Age on Sunday that non-resident Bangladeshis, World Bank, Asian Development Bank and European Union would give financial support to create the refinance and pre-finance schemes.
The central bank will collect Tk 400 crore from the NRBs to create a refinance scheme in cooperation with the United Nations Capital Development Fund, he said.
‘The BB will be able to bring the NRBs fund in the country under the initiative. The central bank has already held a meeting with the UNCDF in this regard,’ he said.
The official said the NRBs would get 1 per cent interest for their investment in the scheme.
The BB will disburse the fund to the scheduled banks with 5 per cent interest and clients will receive the fund with 10 per cent interest from the banks, he said.
The ADB will give Tk 100 crore to the government and the central bank will use the fund as refinance scheme to increase skill and business capacity of the SME clients.
The ADB will provide the fund by June with 0.75 per cent interest.
Under this refinance scheme, the central bank will train up around 10 lakh entrepreneurs and bankers across the country in a bid to create awareness of the SME business among them, the BB official said.
The EU will also provide Tk 200 crore to the government to stimulate the SME activities, he said.
The BB official said high officials of the EU felt encouraged to provide the fund after attending the women entrepreneurs conference and products display held on March 13, 2014 at the Ruposhi Bangla Hotel in the capital.
The EU will conduct a survey before giving the fund and the survey team will come in the next month, the official said.
The World Bank will provide Tk 170 crore as pre-finance fund to the government and the central bank will utilise the fund, he said.
The rural clients will use the fund to rebuild their houses, he said.
The BB will disburse the fund to the clients through both the banks and non-government organisations.
The official said that the fund would not relate directly to the SME activities, but it would help spur the clients’ business.
The World Bank will impose 0.75 per cent interest on the fund and the banks will disburse the fund with the highest 10 per cent interest.
Clients, however, will count 12 per cent interest if they receive the loans from the NGOs.
The BB official said that the cost of fund of NGOs was high than the banks, so they (NGOs) would impose higher interest rate.
BB SME and special programmes department general mananger Md Masum Patwary told New Age on Sunday that the four refinance and pre-finance funds would be introduced in the quickest possible time.
The country’s SME clients will be able to get more loans with lower rate of interest once the schemes are launched, he added.