Tk 10,000 crore incentive for small and medium enterprises

To face the effects of coronavirus, the government has taken an initiative to provide a Tk 10,000 crore incentive loan package for the entrepreneurs of cottage and small and medium enterprises (SMEs).

The Financial Institutions Division of the Ministry of Finance has finalized a policy in this regard.

Sources said the policy has been sent to the Cabinet Division for approval.

According to the ministry sources, SMEs were not benefited from the previous incentive packages implemented by the government to face the effects of corona. So this initiative has been taken to face the coronavirus this year. Out of this package of Tk 10,000 crore, Tk 6,000 crore will be given as loan for manufacturing and services and Tk 4,000 crore as loan for trading sector.

The loan will be disbursed through microfinance institutions (MFIs) or NGOs. According to the policy, Tk 10,000 crore fund will be formed by Bangladesh Bank, and Bangladesh Bank will set up a 'credit facility' to implement it. This incentive loan will be given only in the working capital sector.