The New Nation - Internet Edition

Staff Reporter

Commercial Banks in Bangladesh seem to be reluctant to lend to for Small and Medium Enterprises (SME), complained Bangladesh Bank Governor Dr Salehuddin Ahmed.

He also blamed the commercial banks, which provides loan to this sector for charging higher interest rates. He, however, urged them to cut their interest rates lower in order to patronise SME industries development in Bangladesh.

The Governor of Bangladesh Bank also called upon PKSF and partner NGOs to provide loans to the SMEs at lower interest rate as banks and financial institutions (FIs) are reluctant.

"Our financial structure is for the top borrowers only," he said, expressing dissatisfaction over the unwillingness of banks and FIs to reduce interest rate for SMEs and becoming pro-active to help them prepare loan appraisals.

He was talking to the media yesterday after a workshop on Finance for Enterprise Development and Employment Creation (FEDEC)" project, at the Palli Karma-Sahayak Foundation (PKSF) auditorium in the city.

According to the FEDEC presentation, the project costing US$ 57.8 million, including IFAD support of US$ 35 million, is a part of the government's effort to develop micro-enterprise, create employment and help reduce poverty.

Around 118,000 micro-entrepreneurs will get loan facilities of US$ 53.7 million through PKSF and its 118 partner NGOs to expand existing business or start a new business under the project.

The project activities will include loan facilities for micro-enterprises, market-chain development, training and project management activities.

PKSF managing director Dr Quazi Mesbahuddin Ahmed, PKSF DMD Parveen Mahmud, project coordinator Mohammed Fazlul Kader and IFAD representative Nigel Brett also spoke at the meeting.