Some 20 lakh people engaged in different small trading businesses will get Tk 6,000 crore in a government incentive package for a turnaround from the loss they incurred during the Covid-19 pandemic.
This will be financed from the SME (Small and Medium Entrepreneur) sector incentive package announced by the Prime Minister Sheikh Hasina.
The interest rate on the loan will be 9 percent like the incentive package for the SME sector, of which 4 percent will be given by the borrower and the remaining 5 percent by the government as subsidy.
The central bank has proposed to amend the SME incentive package policy to bring traders under the aforementioned benefits.
The proposal has been sent to the finance ministry recently.
Permission has also been sought from the SME incentive package to set a limit of 30 percent or Tk 6,000 crore for the trading sector.
This information has been obtained from the central bank and Ministry of Finance sources.
It is also learnt that the Bangladesh Bank and the Ministry of Finance have already adopted a policy decision to finance the trading sector from the SME package.
Md Asadul Islam, senior secretary of Financial Institutions of Ministry of Finance, has directed action in this regard.
However, the central bank has sought consent to implement the verbal directive.
Rezaul Karim, President of Bangladesh Shop Owners Association, told the Bangladesh Post, “There are 5.3 million traders and almost 20 lakh shops across the country.”
They have suffered the most, he said adding that their demand for loans is low.
“Now if the government simplifies the policy, these entrepreneurs will get help from the incentive package. They can turn around a lot,” he mentioned.
The government has announced various incentive packages worth Tk 1.03 lakh crore for the loss-making manufacturing industries, exports and services and SME sector due to the Coronavirus pandemic.
But outside these sectors, there are about 20 lakh traders across the country.
They are small traders in hotels, restaurants, groceries, retail-wholesale shops, sweetmeat shops and market shops.
These traders have suffered in the Corona period. But they were not given any benefits, and they have not come under any kind of package.
