DHAKA, Nov 15, 2018 (BSS) – Experts at a discussion today stressed introducing the SME Credit Guarantee Scheme in Bangladesh for developing its SME sector and reducing banking risk.
They said the SME sector plays a vital role in addressing inequality and poverty and that is why Bangladesh Bank should put emphasis on the development of SME sector considering it as a driving force for industrialisation.
The discussion on “Credit Guarantee Scheme for Promoting Access to Finance for SMEs” was arranged at the Bangladesh Institute of Bank Management (BIBM) auditorium in the city.
Bangladesh Bank deputy governor SM Moniruzzaman, BIBM director (Research, Development and Advisor) Prof Dr Prashanta Kumar Banerjee, former managing director of Pubali Bank Limited M Helal Chowdhury, BIBM assistant professor Dr M Mosharraf Hossain and general manager of SME Foundation M Nazim Hasan Sattar, among others, spoke at the discussion.
Speaking as the chief guest, Moniruzzaman said the role of SMEs is indispensable for the overall economic development of a country like Bangladesh.
“Since this sector is labour-intensive with short gestation period, it is capable of increasing national income as well as rapid employment generation and achieving Sustainable Development Goals (SDGs),” he said.
The deputy governor said the Credit Guarantee Scheme (CGS) may help banks share the risk of loan default for a specific type or market of customers and help enterprises get loans at their expected level with insufficient collateral.
Helal Ahmed said bankers should provide special focus on SME entrepreneurs as the sector is playing a vital role in developing the country.