Salman F Rahman said if the banks are in trouble to give loans to the private sector, the Bangladesh Bank can cooperate
At the time of the Covid-19 outbreak, all new and old businessmen are in trouble and cannot expand their businesses as they have capital problems. However, the proposed budget for the 2020-21 financial year has called for the flow of credit to the private sector.
In such a scenario, when the question arises as to whether the banks can lend to the private sector, Salman F Rahman, advisor to the prime minister on the private sector, said there would be no problem in getting a loan considering the liquidity of the bank. And, if there is a problem, an alternative arrangement will be made.
He was speaking as the chief guest at the inaugural function of the online training program for entrepreneurs and skills development projects under the prime minister's office on Saturday.
Salman F Rahman said that if banks have difficulty in giving loans to the private sector, the Bangladesh Bank can cooperate. The governor of the central bank said there is no liquidity problem in the country's banking sector. The question is if the government borrows more from the banks to implement the budget, the private sector will not get more loans.
The finance minister mentioned that the budget was very flexible and there were opportunities to revise it, said the adviser, adding there was a fund of Tk100 crore which would be used.
To new entrepreneurs, Salman F Rahman said there was a need for training, skills and luck to become an entrepreneur or a successful entrepreneur. Many people want to succeed very easily (shortcut). He said there is no shortcut to success.
New entrepreneurs have capital problems at first. He spoke of the German approach to solving this problem where big companies help small companies. Big companies sometimes do it alone and sometimes a few companies do it together. Such an initiative can also be taken in Bangladesh.
In this case, loans can be arranged for small companies like capital ventures. He also thinks the Bangladesh Bank can come forward as their guarantor.
Bangladesh Investment Development Authority's chairman Sirajul Islam, Entrepreneurship and Skill Development Project director Abul Khair Mohammad Hafizullah Khan, deputy commissioners of Narsingdi, Satkhira, Faridpur and Moulvibazar, training coordinators of 64 districts, entrepreneurs of the private sector and high officials of the training institutes were present on the occasion.