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Financial Express Report On EEF (ESF)

The Bangladesh government is launching a new Entrepreneurship Support Fund (ESF) on August 12th to replace the existing Equity and Entrepreneurship Fund (EEF). The ESF will focus on recovering disbursed loans properly and establishing updated policies. It will provide loans ranging from 8-50 million taka for agro-based industries and 5-50 million for ICT projects, covering up to 49% of costs with 2% interest over 8 years. The Bangladesh Bank will begin accepting loan applications on August 12th.

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Ahmed Arif
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143 views2 pages

Financial Express Report On EEF (ESF)

The Bangladesh government is launching a new Entrepreneurship Support Fund (ESF) on August 12th to replace the existing Equity and Entrepreneurship Fund (EEF). The ESF will focus on recovering disbursed loans properly and establishing updated policies. It will provide loans ranging from 8-50 million taka for agro-based industries and 5-50 million for ICT projects, covering up to 49% of costs with 2% interest over 8 years. The Bangladesh Bank will begin accepting loan applications on August 12th.

Uploaded by

Ahmed Arif
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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6/29/2020 Entrepreneurship Support Fund to replace EEF

Entrepreneurship Support Fund to replace


EEF
BB to take loan bids from Aug 12

FE Report | Friday, 10 August 2018

The new Entrepreneurship Support Fund (ESF) will be


formally launched on August 12, replacing the existing
Equity and Entrepreneurship Fund (EEF).

The Bangladesh Bank (BB) will start receiving Expression


of Interest (EOI) on the day from the entrepreneurs seeking
new loans from the fund, according to its recent circular.

The Ministry of Finance (MoF) has approved the new


funding initiative, designed to recover disbursed loans
properly in line with a time-befitting policy, officials said.

The government had created the EEF in the fiscal year 2000-01 to extend support to the two promising
sectors -- agro-based food-processing and information and communication technology (ICT) -- for
which Tk 1.0 billion was allocated.

However, the government could neither properly monitor the EEF's activities nor make the fund
receivers accountable to it due to various legal loopholes, they added.

The initiative to launch the ESF was taken considering it necessary to recover disbursed funds properly
as well as to prepare a time-befitting policy.

According to the ESF proposal, a minimum of Tk 8.0 million and a maximum of Tk 50 million loan
support will be provided to the agro-based and food-processing industries.

A maximum of Tk 120 million funds will be given to each machinery-dependent agro-based project.

Besides, ICT-based projects will be entitled to get a minimum of Tk 5.0 million and a maximum of Tk
50 million in loan assistance.

The ESF will support up to 49 per cent of a project's cost, while the entrepreneur concerned will invest
the remaining 51 per cent.
https://thefinancialexpress.com.bd/print/entrepreneurship-support-fund-to-replace-eef-1533876629 1/2
6/29/2020 Entrepreneurship Support Fund to replace EEF

The loan tenure will be eight years with 2.0 per cent simple interest rate.

A sanction board and an evaluation committee will be formed for each of the two sectors, and members
of the boards and the committees will receive honorarium.

The central bank was the implementing agency of the EEF project until May 2009. Later, the
operational function of the fund was transferred to the Investment Corporation of Bangladesh (ICB).

However, BB has been formulating fund management policies for EEF and monitoring its investment-
related activities.

Since its inception, the government has allocated Tk 20 billion in favour of the fund, of which Tk 15.13
billion went to agriculture sector and Tk 5.12 billion went to ICT sector as of March last year.

rezamumu@gmail.com

Editor : Shah Husain Imam


Published by Syed Manzur Elahi for International Publications Limited from Tropicana Tower (4th floor), 45,
Topkhana Road, GPO Box : 2526 Dhaka- 1000 and printed by him from City Publishing House Ltd., 1 RK Mission
Road, Dhaka-1000.

Telephone : PABX : 9553550 (Hunting), 9513814, 7172017 and 7172012 Fax : 880-2-9567049

Email : editor@thefinancialexpress.com.bd, fexpress68@gmail.com

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https://thefinancialexpress.com.bd/print/entrepreneurship-support-fund-to-replace-eef-1533876629 2/2

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