Bank Asia signs deal with BB for CMSME refinance fund

Bank Asia PLC has signed a Participation Agreement with Bangladesh Bank to provide loans to CMSME enterprises at concessional interest rates and on easy terms under the Tk 5,000 crore Working Capital Refinance Fund for the CMSME sector.

The agreement signing ceremony was held on Tuesday at the AN Hamidullah Conference Room at the Bangladesh Bank Head Office. Md Anis Ur Rahman, Deputy Governor of Bangladesh Bank, attended the ceremony as the Chief Guest, says a press release.

The fund has been established by Bangladesh Bank under the Tk 60,000 crore stimulus package. The initiative aims to provide necessary working capital loans/investment to CMSME enterprises, enabling them to operate their production, service and business activities at full capacity.

It is also expected to contribute to creating direct and indirect employment and help accelerate the country’s economic recovery. Under this fund, generally viable CMSME enterprises that are unable to operate at full capacity due to a shortage of working capital will be eligible for financing at an interest rate of 9%.

Md Zabdul Islam, Director of the SME and Special Programmes Department of Bangladesh Bank, and Syed Zulkar Nayen, Deputy Managing Director of Bank Asia, exchanged the agreement on behalf of their respective organisations. Nahid Rahman, Executive Director, Shahanaj Pervin, Additional Director of Bangladesh Bank, and Mohammad Saifuddowla, Head of Small Business of Bank Asia, were also present.