Brac Bank has teamed up with Green Delta Insurance to offer microinsurance services for the livestock farmers in the rural areas.
This came as Brac Bank and Green Delta Insurance Company Limited with support from the Embassy of Switzerland through its Microinsurance Market Development Programme (BMMDP/Surokkha) managed by Swisscontact have signed a memorandum of understanding (MoU) at Brac Bank headquarters on 8 September.
Syed Moinuddin Ahmed, AMD and Company Secretary of Green Delta; and Syed Abdul Momen, Deputy Managing Director and Head of SME Banking of Brac Bank, signed the MoU for their respective organisations.
While Brac Bank is to mobilize at least Tk15 crore (CHF 1.8 million) to the livestock sector farmers with tailor-made loan products, Green Delta will provide the microinsurance services. The microinsurance will cover for both the asset (livestock) and liability (outstanding loan amount) in case of death or permanent disability of the insured cattle.
The project will facilitate financing worth 1.8 million Swiss Francs for approximately 600 farmers with unique cattle outreach of 1,600. The project is also expected to reduce the vulnerability for 6,000 farmers through complementing livestock extension services.
Selim R. F Husain, Managing Director and CEO, Brac Bank; Corinne Henchoz Pignani, Deputy Head of Cooperation, The Embassy of Switzerland; Syeda Zinia Rashid, Senior Programme Officer, The Embassy of Switzerland; and Mujibul Hasan, Country Director, Swisscontact, were also present at the signing ceremony to encourage all stakeholders. Farzanah Chowdhury, Managing Director and CEO of Green Delta Insurance Company Limited, joined the session virtually.