Bangladesh Bank Governor Dr Atiur Rahman (3rd from right) launches ESCAP country studies at a seminar in Dhaka Tuesday.

Bangladesh Bank Governor Dr Atiur Rahman urged the Banks and other financial institutions to consider SME loans as their social responsibility on the way to economic development.

He spoke at a sub-regional seminar styled as ‘Enabling Environment for Integration of SMEs in Global Value Chain’ on Tuesday in the city.

Later, Dr Atiur Rahman launched country studies on Bangladesh, Nepal and Sri Lanka, conducted by ESCAP (United Nations Economic and Social Commission for Asia and the Pacific).

The seminar was jointly organised by ICC Bangladesh, ESCAP and BRAC Bank Limited.

President of ICC Bangladesh Mahbubur Rahman, managing director of BRAC Bank Syed Mahbubur Rahman, representative from Trade and Investment Division of ESCAP Dr Masato Abe and managing director of SME Foundation Syed Rezwanul Kabir, among others, also addressed.

The central bank chief said Bangladesh was less affected by global recession because of its economic inclusiveness, diversification and special emphasis on SMEs and agriculture. He underscored technological development in the SME sector to include global value chain.

“There is no alternative to technological advancement for growth of SMEs.”

Enabling environment and infrastructure development are also essential parts for integration into global value chain, Dr Rahman added.

He said the women entrepreneurs are being provided loans at single digit interest rates currently.

Mahbubur Rahman stressed the development of SME sector to achieve 7.2 per cent growth in the current fiscal and become a middle income country by 2021. He urged the SME Foundation to make sure that their loans are being prudently utilised.

He said the SME Foundation should undertake initiative to ensure market access of non-traditional products so they enter into global value chain.

BRAC Bank MD and CEO Syed Mahbubur Rahman said the bank disbursed 92 percent of US$ 2.2 billion loans to 400,000 SMEs as collateral free credit.

Dr Masato Abe explained the importance of the SMEs’ integration into global value chain as well as its impact on Asian economies.

Chairman of Centre for SME Growth and Development Finance Dr Sailendra Narain, ICCB Vice Presidents Latifur Rahman and Rokeya Afzal Rahman, ICCB Executive Board Member R Maksud Khan and DCCI President Asif Ibrahim also attended the function.

The Daily Sun/Bangladesh/ 4th July 2012