BB to form Tk 500cr fund for startups

Bangladesh Bank yesterday decided to form a Tk 500 crore fund to help startups commence business. The central bank's board of directors took the decision to enable the new entrepreneurs to avail financing from banks smoothly.

"It is really a good initiative, no doubt," said Syed Almas Kabir, president of the Bangladesh Association of Software and Information Services.

"Access to finance has been a big challenge for startups over the last couple of years. This will help address that challenge," he said.

An Entrepreneurship Support Fund formed earlier by the central bank is yet to become popular, he said. It is not possible for many IT entrepreneurs to comply with its collateral conditions, such as land and flats, said Kabir.