The Cabinet today in principle approved the draft of Secured Transaction (Immovable Assets) Act, 2022 keeping the option to take loan from bank against collateral of immovable property.
The approval came at the regular Cabinet meeting held with Prime Minister Sheikh Hasina in the chair at Jatiya Sangsad Bhaban.
Cabinet Secretary Khandker Anwarul Islam briefed the reporters about the outcomes of the meeting at the Bangladesh Secretariat.
He said at present movable property or capital equipment has to be submitted as collateral against getting bank loan but “this law would allow (anyone) to take loan against any immovable property as such properties has been proposed to accept as collateral”.
The Cabinet secretary said if a person has a fixed deposit in a bank, he can borrow from the bank keeping it as collateral in accordance with the ratio.
He added a few more immovable properties have been identified such as raw material for manufacture of goods in accordance with the export order, deposits of banks and financial institutions, gold, silver or other recognized precious metals, share certificates of registered companies, mineral resources, IP rights, expensive cars, and fisheries and cattle etc.
“This law is being enacted mainly considering the small and medium entrepreneurs,” said the Cabinet secretary, mentioning that most of the time they don’t have collateral.
“It (this law) will make a lot bigger based of investment (for small and medium entrepreneurs),” he added.
The Cabinet also gave final nod to the draft of the Government Primary School Teacher Welfare Trust Act, 2022.
Regarding the act, Anwarul Islam said if a teacher dies during service, the expense of education of his minor child will be given till they become adult.
In addition, he said, the expense will be given for the necessity of a child with disability or special child.
Besides, teachers will receive some financial benefits, including medical expenses, he added.
Replying to a query, the Cabinet secretary said the teachers have to deposit a certain amount to the trust fund and it will be determined by the rules.
The Cabinet also in principle cleared Bangladesh Atomic Energy Commission (Amended) Act, 2022.
On the other hand, draft of National Employment Policy, 2022 and the draft agreements between Bangladesh and Iran as well as Bangladesh and the Maldives for avoidance of double taxation and prevention of revenue dodging were also approved by the today’s Cabinet.
Source: Bangladesh Sangbad Sangstha (BSS)