Special initiative to make youths entrepreneurs, Tk 60,000 crore in stimulus: Governor
Photo: Collected
Bangladesh Bank Governor Md Mostakur Rahman has said the central bank has taken a special initiative to connect the country’s youths with the mainstream of the economy and develop them as entrepreneurs. At the same time, an initiative has been taken to implement stimulus packages of Tk 60,000 crore to ease the pressure of high interest and provide low-interest financing to entrepreneurs, reopen closed industrial units and increase employment.
A views-exchange meeting was held in the conference room of Bangladesh Bank’s Bogura office on Friday to take the opinions and recommendations of stakeholders of the Bogura region on implementing these stimulus packages announced for the development of the private sector. He said this while speaking there as the chief guest.
With Md Sakhawat Hossain, executive director of Bangladesh Bank’s Bogura office, in the chair, Salahuddin Tofadar, director (banking and finance) of the head office, and AKM Saiduzzaman, director of Agricultural Credit Department-2, were special guests at the meeting. Sardar Al Imran, director (administration) of Bangladesh Bank Bogura, delivered the welcome speech. Director (inspection) Selim Ahmed presented the concept paper.
The governor said entrepreneurs are now under great pressure in running their businesses because of high interest. Currently, the interest rate on bank loans is about 12 to 14 percent. It has become difficult for entrepreneurs to succeed by running businesses at such high costs.
Saying arrangements have been made for low-interest financing under various stimulus packages to deal with this situation, he said the main goal of the Tk 60,000 crore packages is to reduce entrepreneurs’ financing costs and create the opportunity to make businesses sustainable.
He said surplus funds are being taken from commercial banks at 10 percent interest and funds are being given to banks at 4 percent interest for entrepreneurs and businesspeople. Bangladesh Bank’s own money is not being spent in this; the government is bearing the 6 percent interest subsidy. As a result, opportunities for commercially viable and sustainable financing will be created for entrepreneurs.
The governor also spoke of taking up a special pilot programme to develop youths as entrepreneurs. He said this initiative is meant to put to use in the economy the energy of the enthusiasm, spirit and participation seen among youths recently. Initially, a target has been set to create 5,000 young entrepreneurs. In the first phase, applications will be taken in 8 districts from 16 September to 15 October. In the remaining 56 districts, applications will be taken from 1 November to 30 November.
He said there are plans to expand its scope further in future if the pilot programme succeeds. One of its goals is to bring youths into the mainstream of the economy and develop them as entrepreneurs.
After the meeting, stakeholders said that, alongside implementing the policies formulated with the constructive opinions and coordinated cooperation of all sides, importance needs to be given to setting up agro-based industries. Regional heads and senior officials of scheduled banks, representatives of various NGOs, businesspeople and industrial entrepreneurs, agricultural entrepreneurs, representatives of the small and medium enterprise (SME) sector, leaders of the chambers of commerce and industry of the Bogura region, representatives of various government and private organisations, women entrepreneurs and media workers took part in the meeting.
