The Bangladesh Bank and Brac Bank have signed an agreement to provide loan under refinancing facilities for the cottage, micro, small and medium enterprises (CMSMEs).
Brac Bank has signed an agreement with Bangladesh Bank to become a Participating Financial institution under the 'Refinance Scheme against Term Loan to CMSME Sector', reads a press release.
The Bangladesh Bank has set up a fund amounting to Tk25,000 crore to be disbursed through the participating banks and non-bank financial institutions.
Central bank Governor Abdur Rouf Talukder attended the Participation Agreement signing ceremony at Bangladesh Bank on 24 August as the chief guest and Deputy Governor Abu Farah Nasser was present as the special guest.
Jaker Hossain, director at SME & Special Programmes Department; and Selim RF Hussain, Managing Director & CEO at Brac Bank, signed the agreement on behalf of their respective organisations. Syed Abdul Momen, Deputy Managing Director and Head of SME Banking, Brac Bank, and other senior officials of Bangladesh Bank and other banks were also present.
As per terms of the refinancing scheme, Brac Bank will provide loans at 7% to CMSMEs, especially in SME clusters, with a particular focus on women entrepreneurs and business owners affected by natural calamities.
Being the leading collateral-free CMSME financer in the country, Brac Bank has always been committed to CMSME sector, which is the lifeblood of the economy and vital to employment generation and invigorating the country's growth engine.
Welcoming the refinancing facility, Selim RF Hussain, Managing Director & CEO of Brac Bank, said: "We appreciate Bangladesh Bank for making Brac Bank a partner of Refinance Scheme against Term Loan to CMSME Sector. As a CMSME-focused bank, Brac Bank is committed to ensuring easy access to finance for entrepreneurs at the grassroots level. Given the pandemic, we have redoubled our efforts to provide much-needed funds to the CMSME entrepreneurs. We believe this refinancing facility from Bangladesh Bank will rejuvenate the industries and help them contribute more to the country's economic growth."