The Bangladesh Bank has initiated a programme involving 1 billion taka (US$17.2 million) to promote small- and medium-sized enterprises (SMEs), which neither come under micro credit operations nor have access to bank loans. The fund will be created from the central bank 's own resources and a World Bank Assistance of US$10 million.
Muzharul Haque, executive director of Bangladesh Bank said: "It will be introduced soon, before June this year." The Bangladesh Bank, the central bank of the country, initiated the programme targeting this group of businesses, now called as "missing-middle."
Economists say the "missing-middle" has been a major challenge to the economic growth of the country, while a number of studies show that access to formal sector credit is one of the main obstacles to SMEs’ growth.
Small businesses with a project worth not more than 10 million taka (US$0.17 million) will be eligible for loans under the programme.
