ICB Takes Over From BB To Run EEF
Monday, 01 June 2009

The state-run Investment Corporation of Bangladesh on Monday took responsibilities of the distribution of Equity and Entrepreneurship Fund (EEF) from Bangladesh Bank.

"According to rules of business Bangladesh Bank is not responsible for distribution of EEF. It's a government fund and Bangladesh Bank has helped so far in distribution of fund through its manpower," the deputy governor of the central bank, Md Nazrul Huda, said at the handover ceremony.

"The ICB can do this work very well and Bangladesh Bank will overseeing their work," he said.

EEF was created in Dec 2000 to encourage the investors to put money in the risky but otherwise promising software industry and food processing and agro-based industry by providing financial support.

Bangladesh Bank has been authorised by the government to manage the EEF.

A total of Tk 508 crore has so far been disbursed to finance 251 projects from the Tk 565 crore budget. Among the projects, 217 were agricultural and 34 related to IT.

The crocodile farming project at Bhaluka in Mymensingh, cow-fattening project at Sathia in Pabna were among the innovative projects financed by the EEF.

EEF finances 49 percent of a project if the remainder of the funds comes from the entrepreneur. The minimum budget for a project should be 20 lakh, which was earlier 50 lakh and it can be paid off in maximum eight years.

An entrepreneur told bdnews24.com that EEF loan does not allow credit from any other bank and so if the project expenses exceeded the budget, the entrepreneur faced troubles as they could not borrow money.

Huda said, "We are already working on that issue."

"Those who are continuing with their projects successfully will be allocated more loan or permitted to take loan from other banks," he added.

Source: bdnews24.com

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