Movable assets now authorized as collateral for bank loans
Vehicles, machinery, furniture, electronics, software, agricultural products, minerals, processed fish and livestock – the values of which can be calculated, considered chattels in banking parlance and which do not were not accepted as collateral for loans, can now be provided as collateral.
Cabinet on Wednesday approved the Secured Transactions (Movable Property) Bill, which will help small and medium-sized entrepreneurs and self-employed persons – who do not have enough immovable property – to provide collateral against facilities credit.
Currently, only real estate such as buildings and land are accepted as collateral for bank loans. In some cases, banks also provide loans against savings certificates and deposit-based pension plans, but these do not apply to business loans.
“Now, one can get a bank loan by keeping their movable property – vehicles, jewelry, etc. – as collateral,” Cabinet Secretary Khandker Anwarul Islam told the media after yesterday’s meeting.
The list of such movable assets also includes raw materials for export products, labor vouchers, precious metals such as gold, certificates of deposit in banks and financial institutions, medicinal plants and trees. fruit trees.
Raw materials for manufacturing export products with proper documents as proof can be used as collateral for bank loans. Gold, silver and other precious metals with certificates from any recognized authority on their weight and purity could also be provided as collateral.
A well-known company’s stock certificate and patent or intellectual property rights documents can also be used as collateral.
Meanwhile, the cabinet secretary said work on the Padma Bridge project has been hampered due to the Russian-Ukrainian war as the government can no longer import needed materials from many European countries.
“We are trying to bring all the equipment soon. We also hope that we can open the Padma Bridge before the scheduled time,” he added.
Government Elementary Teachers Welfare Trust
The Cabinet yesterday approved the Government Trust for the Welfare of Primary School Teachers Bill.
According to the plan, a 21-member committee headed by the director general of the Department of Primary Education will set up a fund to collect a certain amount of money from teachers.
Children of teachers will receive money from the trust if a teacher dies before the end of their term. Even the teachers’ families will receive professional training from the trust.
Teachers and their family members will also receive financial support from the trust if they fall ill.
National employment policy
The Council of Ministers also approved the draft national employment policy with a view to creating a qualified labor force to face the fourth industrial revolution.
“We plan to reskill at least 56,000 people within 3-4 years, as the existing education system cannot produce a skilled workforce capable of meeting future challenges,” the cabinet secretary said.