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Another overseas support for the cottage, micro, small and medium enterprises (CMSMEs) is coming from the Asian Development Bank to facilitate the post-Covid recovery of the ailing industries.
The Manila-based lender will provide US$150 million worth of loans for supporting the country’s CMSMEs for the economic recovery shortly, said an official of the Economic Relations Division (ERD).
The government had already completed negotiations earlier this month to receive the loan, he added.
ADB will provide the fund under the ‘Supporting Small Scale Employment Creation Programme.’
The government will use the commercial banks and financial institutions to lend money to the CMSMEs so that the ailing small enterprises can revive, said the ERD official.
Earlier, in September, the ADB Board approved a $250 million policy-based loan to support the economic recovery of CMSMEs following the Covid-19 pandemic.
The Covid-19 pandemic has hit hard the CMSMEs especially the women-led enterprises and informal workers here. The sectors that were most affected are agriculture, fisheries, livestock, small manufacturing, food processing, services, and trading.
The CMSMEs account for nearly 80 per cent of industrial employment in Bangladesh.
Some of the key challenges faced by women entrepreneurs include decreased income and working capitals as businesses have been halted or shut down, depletion of savings, and restricted mobility outside the home.
According to the ADB, its proposed $150 million funds would benefit the unemployed youth and returning migrants, particularly women who will receive training to restart and expand micro businesses.
The government had announced some 28 stimulus packages of Tk1.35 trillion for different sectors including the CMSMEs to keep rolling the wheels of the country’s economy against the backdrop of the Covid-19 pandemic.
According to the ADB, its $150 million financial support will also be made available to qualified rural job creation programmes to expand the non-farm employment base.
The Bank said the project was expected to directly benefit at least 100,000 people and 30,000 enterprises or self-employment opportunities in Bangladesh by providing a reliable source of finance.
The ERD official said: “Under the proposed $150 million ADB-funded project, the commercial banks and financial institutions will provide financial support to women returnee migrants, young unemployed women, and rural women entrepreneurs.”
It will also provide technical support for entrepreneurship and employment opportunities, he said.
“We have completed negotiations. The loan proposal is likely to be placed before the ADB board within two months. Then we will sign a loan deal,” the ERD official said.
(FE)
