The government has agreed in principle to provide a state guarantee for a Tk 10-billion Bangladesh Bank pre-finance loan facility to Probashi Kallyan Bank, aiming to strengthen workers' skills and expand access to overseas-employment opportunities.
The Financial Institutions Division (FID) under the Ministry of Finance has issued a formal recommendation to complete the necessary procedures for granting the guarantee against the pre-finance loan.
The policy initiative is intended to prepare Bangladeshi workers for high-demand overseas labour markets, including Japan, China, South Korea, Australia, Europe and North America.
Under the scheme, trainees seeking language or technical training to access these potential labour markets will be eligible for pre-financed bank loans at the prevailing bank rate.
According to officials at Probashi Kallyan Bank, Bangladesh Bank established the Tk 10 billion pre-finance fund at the bank rate to support poverty reduction, employment generation and foreign exchange earnings through skilled labour migration.
The maximum loan tenure will be up to 10 years from the disbursement of the first instalment.
The fund will be disbursed strictly under the approved schemes titled "Special Skill Enhancement Loans for Foreign Employment" and "Migration Loans."
Before the formal release of funds, a bilateral agreement will be signed between Probashi Kallyan Bank and the SME & Special Programmes Department of Bangladesh Bank.
With the Ministry of Finance's backing for the state guarantee, the disbursement of concessionary loans is expected to accelerate, enabling more aspiring migrant workers to secure skilled employment abroad safely and at an affordable cost.
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