FID wants speedy release of Tk2,000 crore funding to create jobs

Fund for job creation 

• Financial Institutions Division will write to Finance Division to allocate fund for job creation
• It will also write for loan to youths who lost jobs due to the pandemic, expatriate who returned home and the poor
• The money will be distributed to keep the rural economy vibrant

The Financial Institutions Division (FID) will send a letter to the Finance Division, asking the latter to disburse Tk2,000 crore allocated in the budget for job creation, said officials.  

The letter will ask the Finance Division to quickly distribute loans among youths who lost their jobs due to the novel coronavirus pandemic, expatriates who returned home and the poor. 

The money will be distributed through Karmasangsthan Bank, Probashi Kallyan Bank, Palli Sanchay Bank, and Palli Karma-Sahayak Foundation to keep the rural economy vibrant.

Further, the FID has directed Bangladesh Krishi Bank and Rajshahi Krishi Unnayan Bank to expedite the implementation of the incentives packages for the agriculture, fisheries and livestock, plus SME sectors. 

Banks have been urged to ensure transparency in the disbursement of loans from the stimulus packages.

FID Senior Secretary Md Asadul Islam held an online meeting with top executives of banks on Monday to finalise the working plan of the government-owned specialised banks and financial institutions for implementing the incentives packages announced by the government. 
After the meeting, Asadul told The Business Standard the meeting discussed ways to properly achieve the objectives of the incentives packages announced by the prime minister. 

"Instructions have been given to implement the incentive packages in the agriculture, fisheries and livestock sectors quickly and effectively." 

He said the plans of the banks have been discussed in detail. "In cases where there are problems, those will be resolved."

Asadul said, "We want to revive the economy by creating jobs across the country through quick disbursement of the Tk2,000 crore fund. The banks will soon start distributing loans to generate employment."      

Officials said Bangladesh Krishi Bank (BKB) has set a target of disbursing Tk1,199 crore loan from the incentives package of Tk5,000 crore working capital distribution in the agriculture sector due to the novel coronavirus. From April to June 30, the bank provided working capital loans of Tk116.39 crore to 6,268 farmers. 

Additionally, Tk214.18 crore has been given to 28,305 farmers under the four percent interest incentive fund announced by the government in the grain and crop sector till June.

Moreover, the BKB aims to disburse a Tk134.07 crore loan from the government's package for the cottage, micro, small and medium enterprise (CMSME) sector. As of June 30, the bank has disbursed loans of Tk28.02 crore among 750 entrepreneurs.

Furthermore, on the occasion of Mujib Year, the BKB is distributing Tk300 crore in loans to alleviate poverty. Under this scheme, the bank disbursed Tk127.64 crore among 17,551 people at the end of June. 

However, the BKB has not started implementing the target of disbursing Tk73 crore loan in the sectors of agro-based industrial projects and working capital.

Rajshahi Krishi Unnayan Bank will disburse Tk211 crore from the incentives package announced by the government for the CMSME sector. The bank is working on preparing a list of borrowers who have suffered losses due to the pandemic. 

The bank has not started disbursing loans from the refinancing fund set up by the Bangladesh Bank in the grain and crop sector. It has set a target of lending Tk186.20 crore in the industry and service sectors. 

Rajshahi Krishi Unnayan Bank is working to compile a list of actual victims before starting disbursement of loans. It will provide loans from the Tk3,000 crore refinancing fund set up by the Bangladesh Bank for low-income professionals and marginal traders affected by the novel coronavirus. 

To this end, the bank is preparing to ink an agreement with the Bangladesh Bank.

Karmasangsthan Bank has received a loan of Tk300 crore from the Bangladesh Bank to disburse to create small enterprise entrepreneurs in the fisheries and livestock sector. Distribution of loans from that fund will begin this month. 

The bank applied for an additional Tk300 crore from the working capital fund of the agriculture sector to distribute as loans. However, the Bangladesh Bank has not considered the application.