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Budget FY21: Tk2,000cr loan scheme for jobless, expat returnees

  • Published at 08:43 pm June 11th, 2020
Migrant worker
File photo of Bangladeshi migrant workers holding passports Syed Zakir Hossain/Dhaka Tribune

Three banks and one specialized institution will distribute the money, says the finance minister

The government plans to open a Tk2,000 crore low-interest loan scheme to help the expatriates who returned home and are without work and those who have lost their jobs due to the Covid-19 pandemic.

“We are also expanding low-interest credit facilities to poor farmers, recently repatriated overseas workers and skilled but unemployed youths in rural areas to enable them to take up self-employment ventures in sectors like agricultural production, agro-based service, small business, cottage industries, SMEs, etc,” said Finance Minister AHM Mustafa Kamal on Thursday.

“Under this program, Tk2,000 crore will be distributed through three specialized banks, namely Palli Sanchay Bank, Probashi Kallyan Bank, Karmasangsthan Bank and one specialised institution, namely Palli Karma Sahayak Foundation (PKSF), with each receiving Tk500 crore,” he said.

However, he did not say anything about the interest rate of the loan.

The finance minister shared the plan while proposing a national budget of TK568,000 crore — which is 17.9% of GDP — for the 2020-21 fiscal year in parliament.

Total allocation for operating and other expenditures is estimated at Tk362,855 crore, while the allocation for the Annual Development Program (ADP) is Tk205,145 crore, he said.

He also forecast that the overall budget deficit will be Tk190,000 crore, which is 6% of the GDP.