Dhaka Bank joins Tk 5,000cr CMSME refinance fund

Dhaka Bank PLC has signed a participation agreement with Bangladesh Bank (BB) to provide affordable working capital financing to eligible cottage, micro, small and medium enterprises (CMSMEs).

Md Zabdul Islam, director of the SME & Special Programs Department of BB, and Mukarram Hossain Chowdhury, deputy managing director of Dhaka Bank PLC, signed the agreement recently at BB’s head office, according to a press release. The agreement was signed under the Tk 5,000 crore CMSME Working Capital Refinance Fund, which is part of BB’s Tk 60,000 crore economic stimulus package.

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The fund aims to support viable CMSME businesses that are unable to operate at full capacity because of working capital constraints.

Eligible businesses will be able to access financing at an interest rate of up to 9 percent. The financing is expected to support business continuity, production and service activities, employment generation and overall economic growth.

Md Anis Ur Rahman, deputy governor of BB, attended the event as the chief guest. Nahid Rahman, executive director, and Shahanaj Pervin, additional director, of BB were also present.

From Dhaka Bank, Mohammad Mahbubur Rahman Palash, executive vice-president and head of MSME & Emerging Business, attended the event along with senior officials of other banks.