Tk 27bn new bailout packages okayed for CSMEs, the poor

Staff Correspondent

18 January, 2021 12:00 AM printer

Tk 27bn new bailout packages okayed for CSMEs, the poor

Two more stimulus packages involving Tk 27 billion have been approved to help the cottage, small and medium enterprises (CSMEs), improve rural marginal people’s livelihoods and safeguard extreme poor and widows from Covid-19 shocks.

Prime Minister Sheikh Hasina approved the new stimulus packages in line with the recommendations made in three view-exchange meetings that finance division held recently on Covid-19 impacts, a finance ministry release says.  

With these two new packages, the total number of the government’s bailout packages now stands at 23 worth Tk 1240.53 billion, which is 4.44 per cent of GDP.

The finance ministry said the new packages will start functioning very soon.

The size of the first package dealing with the recovery of CSMEs will be Tk 15 billion. The second package of Tk 12 billion will be spent in 150 upazilas to safeguard economically vulnerable people.

Out of Tk 15 billion package for CSMEs, Tk 3 billion will be given to the SME Foundation for expanding its operations meant for the cottage and SMEs alongside facilitating the female entrepreneurship.

Besides, Tk 1 billion will be provided to Bangladesh Small and Cottage Industries Corporation (BSCIC), Tk 500 million to Joyeeta Foundation, Tk 500 million to the NGO Foundation to undertake various

programmes to improve the livelihoods of marginal people, Tk 3 billion to Social Development Foundation, Tk 3 billion to Palli Daridro Bimochon Foundation, Tk 1 billion to Small Farmer Development Foundation, and Tk 3 billion will be provided to Bangladesh Rural Development Board.   

The Tk 12 billion package will be spent on bringing the poor people, widows and women abandoned by their husbands of 150 upazilas under the government allowances in the next fiscal year (FY22).

The finance division has recently organised three view-exchange meetings on the overall aspects of stimulus packages and economic recovery in the wake of COVID-19.

These meetings suggested for expanding the coverage of credit through the various government and semi-government agencies related to cottage, SMEs and the banking system to bring more dynamism in the rural economy to deal with the COVID-19 situation.

High government officials, business leaders, representatives from the banks, financial institutions, development partners and agencies, research organizations, stakeholders of various sectors and media personnel attended those meetings.

The participants also advocated for taking more steps for developing women entrepreneurship, improving the livelihood of the marginal people in the rural areas to further alleviate poverty and thus expanding the social safety nets for the extremely poor families.