Facilitating SME financing key to achieve BB Governor
Bangladesh Bank Governor Md. Mostaqur Rahman yesterday said effective implementation of the ‘One Village, One Product’ policy can be possible by increasing credit flow to SMEs and rural economies.
The Governor made this statement at a discussion on ‘Target of 10 million jobs creation: Potential of Chattogram region’ at Bangladesh Bank’s Chattogram office on Friday.
Deputy Governor Dr. Md. Kabir Ahmed and Executive Director of the Head Office Md. Sirajul Islam were special guests at the exchange of views, chaired by Md. Hanif Mia, Executive Director of the Chittagong Office of Bangladesh Bank.
the central bank boss provided specific directions on issues including providing long-term and easy-to-use credit facilities to blue economy, marine resources, IT sector and man-made fiber, sending expatriate workers abroad as skilled workers based on specific needs instead of sending them as unskilled workers, and strengthening the activities of the Expatriate Welfare Bank to accelerate regional economic development.
Mostaqur Rahman also emphasized on accelerating digital transactions and taking actions to expand Bangla QR and increase financial inclusion to create a cashless Bangladesh.
The concept paper at the event identified the main obstacles to the macroeconomic, industrialization, and banking sectors of the Chittagong region and outlined an outline for overcoming them.
It is mentioned that there are about 200 closed or about to close industries in the Chittagong region, as a result of which about 500,000 workers are unemployed and about 1 lakh crore taka of defaulted and non-commercial loans have accumulated.
There is an opportunity to create about 1 million new jobs, increase production and achieve sustainable development by restarting these factories. However, it is necessary to remove the main obstacles such as energy crisis, lack of long-term capital and shortage of skilled operators.
In addition, the concept paper mentions that it is possible to ensure an integrated economic solution by protecting the overall health of banks and the economy through alternative use of idle land, resolution of legal complications and policy support from the central bank.
It also states that 18 percent of the country’s total exports, 21 percent of imports, 28 percent of remittances, 19.19 percent of total deposits and 18.5 percent of total loans are provided from this region in the national economy.
Deputy Governor Dr. Md. Kabir Ahmed said that the global economy will remain under pressure due to the Middle East war situation. Regional central banking activities should be increased to create employment.
In addition, he emphasized reducing financial and income inequality, ensuring equitable distribution of wealth, and increasing technological skills.
