SMEs with bank accounts to get soft loans

Finance Minister AHM Mustafa Kamal on Wednesday said small and medium enterprises with bank accounts will get loans from the government-announced stimulus package.

"We want cash transfer. We cannot recognise those who do not have bank accounts as businessmen," he said while replying to questions from journalists after a meeting of the Cabinet Committee on Public Purchase.

"Those who are real businessmen and have bank accounts, no matter how small entrepreneurs they are, will get loans. If they apply to any bank for a loan, the Bangladesh Bank and the finance ministry will assist them in ensuring the loan."

The finance minister said this time there is no much trouble about disbursement of loans from stimulus packages.

"I used to see that a farmer would have to spend Tk4,000 to get a loan of Tk5,000. That is not happening now."

The minister described the 50 percent growth in remittance inflow in July-August of the current financial year as "unexpected".

"When I was the planning minister, I had conducted a study and found that 51 percent of remittances came legally, while the remaining 49 percent came through hundi. A 2 percent incentive was introduced to stop the use of hundi and encourage expatriates to send remittances through legal channels."

"This incentive has worked to drive remittance growth. Previously, sending remittances legally was complicated. They have now been simplified. Remittances are increasing due to the government's policy," he added.

Kamal said, "We have a lot of internal resources. Earlier, they were not integrated into the mainstream of the economy, which is being done now. This will further accelerate the economic growth."

He hoped that export earnings will also increase like remittances.