BRAC Bank partners with BB for northern agro-economic hub

BRAC Bank and Bangladesh Bank have signed a Participation Agreement under the central bank’s Tk 3,000 crore revolving Refinance Scheme, a move aimed at creating a special agriculture-based economic centre in northern Bangladesh.

The scheme seeks to increase agricultural production, strengthen agricultural value chains, create employment, and support income-generating activities in the districts under the Rajshahi and Rangpur divisions, unlocking the region’s economic potential. From now, farmers can access financing under the scheme at a maximum interest rate of 7 per cent, says a press release. 

The agreement was signed at a ceremony held at Bangladesh Bank’s head office. Representing the central bank were Deputy Governor Dr. Md. Kabir Ahmed, Executive Director and Spokesperson Arif Hossain Khan, and Chowdhury Liakat Ali, Director of the Sustainable Finance Department, while BRAC Bank was represented by Kazi Dilruba Akter, Head of SME Business Support, and Liton Kumar Biswas, Senior Relationship Manager for MFI and Agriculture Finance.

To support the entire agricultural journey, the scheme will finance four key stages: production and preservation; transportation, marketing and infrastructure; manufacturing and processing of agriculture-based products; and finally, export.

From the fields to the factory floor, the facility is designed to reach every corner of the agricultural economy, covering crop production, fisheries, livestock, agricultural machinery, cold-chain facilities, warehouses, food processing, dairy processing, seed production and other agriculture-based industries.