BB to remove SMEs constraints
Says governor
Bangladesh Bank Governor Dr Atiur Rahman yesterday said the bank has disbursed Tk 19.75 billion to 21,191 entrepreneurs during his tenure to promote small and medium enterprises (SMEs) of the country.
Dr Atiur, who took over in May 2009, said the bank has distributed the amount through its refinance lines for banks and financial institutions against their SME loans till this October.
He said the current size of revolving refinance lines managed by Bangladesh Bank is Tk 16.18 billion and another Tk 3.9 billion is expected to add to this amount from donor organisation Japan International Cooperative Agency (Jica) soon.
Last year, SME lending constituted 21 percent of the total bank lending, he said.
Dr Atiur was addressing a seminar, "Access to Finance and Technological Upgradation for SMEs: Bangladesh Perspective", organised by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) at Bangabandhu International Conference Centre in the city yesterday.
The governor said a strong, dynamic, and efficient SME sector obviously holds the key to the sustainable economic development and industrialisation of a country.
In most of the developing economies, including Bangladesh, lack of adequate access to finance is considered one of the major constraints to the growth of SMEs, he added.
Atiur said the other key issues affecting the country's SMEs include lack of access to technology and market and lack of entrepreneurial capacity, management expertise, skilled manpower, and promotional support service.
He, however, assured that the central bank would address the constraints through policy support and guidelines. The BB has already taken a number of structural and policy measures to increase the SMEs' access to institutional finance, he said.
The governor said an elaborate SME guideline has already been issued, which prescribes a "cluster or area approach" in identifying and utilising specific comparative advantages of different regions for a diverse range of SME activities.
At the event, FBCCI President AK Azad urged the central bank to keep the lending rate of commercial bank at 12 percent.
The seminar was also addressed, among others, by FBCCI first vice president M Jashim Uddin, vice president Mostafa Azad Chowdhury Babu, and director Monwara Hakim Ali.
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