Cabinet approval has been granted to enter into related agreements pertaining to the government’s proposed “Small and Medium Enterprise Development Finance Project”.
The government initially implemented the “Small and Medium Enterprise Credit Scheme Project” to provide investment and working capital loans to small and medium-sized enterprises at concessional interest rates with the financial support of 165 million US dollars from the Asian Development Bank.
As banks prioritize collateral-based lending over cash-flow-based lending leading to problems faced by small and medium entrepreneurs, the government said necessary steps were taken to establish the National Credit Protection Institute.
However, the government has planned to implement a new project called the “Small and Medium Enterprise Development Finance Project” for entrepreneurs who continue to find it difficult to finance their businesses. The Asian Development Bank has agreed to provide funds of USD 100 million for this purpose.
Therefore, the Cabinet of Ministers approved the proposal presented by the President in his capacity as the Minister of Finance to obtain the said loan amount and to enter into related agreements. (NewsWire)
