BRAC Bank, Bangladesh Bank sign Tk 5,000cr CMSME fund deal

BRAC Bank and Bangladesh Bank have signed a Participation Agreement to disburse low-interest, easy-term loans from a Tk 5,000 crore working capital refinance fund for the country’s cottage, micro, small and medium enterprise (CMSME) sector.

The agreement was signed at Bangladesh Bank’s head office on September 8. Tareq Refat Ullah Khan, Managing Director and CEO of BRAC Bank, signed on behalf of the bank. Syed Abdul Momen, Additional Managing Director and Head of SME Banking, exchanged the agreement with Md Jabdul Islam, Director of the SME and Special Programmes Department of Bangladesh Bank.

Bangladesh Bank Deputy Governor Md Anisur Rahman attended the signing as chief guest. Executive Director Nahid Rahman and Additional Director Shahanaz Parveen were also present.

The fund was introduced under Bangladesh Bank’s Tk 60,000 crore stimulus package to provide working capital to CMSME businesses unable to operate at full capacity due to funding shortages. Eligible enterprises can access the facility at an interest rate of 9 per cent.

The initiative also aims to boost economic activity and create direct and indirect employment across the country.

Tareq Refat Ullah Khan said BRAC Bank was established by its founder, Sir Fazle Hasan Abed, to address the financing challenges faced by CMSME entrepreneurs, a purpose that remains central to the bank’s mission.

“To date, we have financed more than two million CMSME entrepreneurs and contributed, directly and indirectly, to the creation of more than 20 million jobs,” he said.

He added that the Bangladesh Bank refinance facility would further strengthen BRAC Bank’s ability to support CMSME entrepreneurs as they expand their businesses and contribute to economic growth.

He also stressed the need to explore innovative ways to expand access to finance for CMSMEs and support the next generation of entrepreneurs.