The Finance and Budget Minister of Chad, Tahir Hamid Nguilin has defended at the National Assembly on Monday the new law establishing a fund for youth entrepreneurship, adopted unanimously by Members of Parliament.
The Minister explained that, “it is a guarantee fund in reality which will mobilize public resources, but also resources of national or foreign financial institutions, which will bring money in the form of loan, in an account deposit and bank. “
“Whenever the banks want to make loans to young people, and it turns out that young people lack the means of guarantee, the State will provide its guarantee up to 70%. this guarantee comes back to be recycled in the form of credit for other young people “, Tahir Hamid Nguilin specified.
For this first phase, “the State grants loans to the tune of 30 billion FCFA. It is a purely banking activity which will be put to the benefit of young entrepreneurs who have bankable and serious files, and who just lack guarantees and for which banks sometimes lack long resources. “
“Despite the noteworthy progress made in socio-economic development by the various actors, major challenges persist”, the Economy and Planning Commission of Parliament recognizes in its report.
According to the Commission, “the health crisis has forced Chad to experience the bankruptcy of its economic system, then the closure of all markets. This situation has resulted in the absence of sources of funding for all essential sectors of the economy such as agriculture, crafts and small and medium-sized enterprises (SMEs).
