February 19: The Asian Development Bank (ADB) is providing a grant assistance of US$ 15 million to promote the development of micro, small, and medium enterprise. The agreement was signed in the capital today.

The agreement was signed by the Director General of the Asian Development Bank Mr. Kunio Senga and Finance Secretary Dasho Yangki T. Wangchuk.

Under the agreement, ADB will provide 15 million dollars as program grant to promote the development of micro, small, and medium enterprise.

According to a news release from the ADB, 90% of the private sector comprise of micro, small, and medium enterprise. It says the grant will be used to stimulate private sector growth, increase employment opportunities, and broaden the economic base.

Six million dollars will be used to address policy reforms and provide an enabling environment. Nine million dollars will be used to enhance market based finance and capacity building. Of the nine million dollars, five million dollars will be used by Bhutan Development Finance Corporation (BDFC) to finance micro, small, and medium enterprise.

The Director General of the ADB and the Managing Director of the BDFC also signed an agreement to this effect.

Director General of the ADB Mr. Kunio Senga said, we expect that 1400 enterprises would be assisted through this program. And those enterprises would be able to have access to the line of credit from BDFC.

"One difficulty for the enterprises to establish and do business here in this country is the lack of credit. So therefore through BDFC they should be able to get necessary funds to do so," said Kunio Senga.

Officials from the ADB, the Finance Ministry, the Ministry of Economic Affairs and Bhutan Development Finance Corporation were present at the signing.