ICB to manage IT project under equity fund

The state-owned Investment Corporation of Bangladesh (ICB) is set to manage the IT project under the Equity and Entrepreneurship Fund (EEF).

The finance ministry has already approved the transfer of the fund management to the ICB from the central bank, officials said.

“We have received the approval letter. An agreement will be signed with the central bank soon to transfer management,” said Iftikhar-Uz-Zaman, general manager of ICB.

The government allocated Tk 100 crore in the budget for the IT project under the EEF for the current fiscal year.

The central bank had earlier sent a proposal to the finance ministry for approval to the management transfer.

Although Bangladesh Bank decided in November last year in principle to transfer the management of the entire EEF to the ICB for better use of the government fund, the IT project under the EEF will initially be handed over to the ICB.

The ICB had earlier submitted a proposal to the BB, seeking to manage the EEF following the government's intention to separate the EEF management from the central bank. This was because the management of the fund was not a suitable job for the central bank.

The government formed the EEF in 2000 with an initial fund of Tk 100 crore to extend equity support to eligible companies in IT, agriculture and food processing sectors, so that investors are encouraged to invest in these risky, yet promising sectors.

Presently, all the scheduled commercial banks and financial institutions are involved in the administration of EEF.

The BB has so far disbursed Tk 444.31 crore against the granted Tk 528.60 crore for 197 projects in agriculture and food processing and Tk 44.05 crore against the approved fund of Tk 56.87 crore for 32 projects in the IT sector.