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 In keeping with the IRIS practice that consistently demonstrates
that the quality of the policy environment is the determining factor
in achieving sustainable development and poverty alleviation, JOBS
has undertaken a number of initiatives to improve the enabling
environment for SME and micro-enterprises in Bangladesh. JOBS’s main
sphere of policy activity centers on access to credit by SMEs. In a
country where many micro-enterprises have relatively easy access to
credit through micro finance, SMEs face greater hurdles, because
they are too large to qualify for micro finance loans but lack the
collateral that commercial banks require. As a consequence, the
Project, with the help of local and international experts, has
drafted the proposed Secured Transaction Act, which is currently
being reviewed by the government. This Act, if adopted, will place a
strong legal basis for lending against movable assets. As mentioned
earlier, JOBS is also a major player in the development of a
supportive environment for the enhanced use of e-commerce which will
shore up economic development. Earlier policy successes include the
removal of interest rate caps on SME loans, the raise of the VAT
rate floor, and the extension of the authorization of the Credit
Information Bureau to provide information about SME loans.
The following links will take you
to more details information on Secured Transaction Act and VAT &
Interest Rates
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