BRAC Bank signs deal with Bangladesh Bank to avail refinancing facility for CMSMEs

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 will become Participating Financial institution under the ‘Refinance Scheme against Term Loan to CMSME Sector’, read a press release.

Bangladesh Bank has set up a fund amounting to Tk 250 billion to be disbursed through the participating banks and non-bank financial institutions.

Abdur Rouf Talukder, governor of Bangladesh Bank, attended the agreement signing ceremony as the chief guest at the central bank building on 24 August. BB Deputy Governor Abu Farah Md Nasser was present on the occasion as the special guest.

Md Jaker Hossain, director of SME & Special Programmes Department at Bangladesh Bank; and Selim RF Hussain, managing director and CEO of BRAC Bank, signed the agreement on behalf of their respective organisations. Syed Abdul Momen, deputy managing director and head of SME Banking at 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 per cent 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, said the press release.

Welcoming the refinancing facility, Selim RF Hussain 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.”