Trust Bank to roll out SME loans under BB refinance fund

Trust Bank PLC has signed a participation agreement with Bangladesh Bank under the central bank’s Tk 5,000 crore CMSME working capital refinance fund, aimed at providing affordable and accessible working capital financing to cottage, micro, small and medium enterprises (CMSMEs).

Md Zabdul Islam, director of the SME and Special Programmes Department of Bangladesh Bank, and Akhlasur Rahman Bhuiyan, deputy managing director of Trust Bank PLC, signed the agreement at the central bank’s headquarters in Motijheel, Dhaka recently, according to a press release.

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Md Anis Ur Rahman, deputy governor of Bangladesh Bank, attended the ceremony as the chief guest.

The fund, established under Bangladesh Bank’s Tk 600 billion stimulus package, is designed to support operational CMSME enterprises that are unable to utilise their full production, service or business capacity due to inadequate working capital.

Eligible enterprises will be able to access financing at an interest rate of only 9 percent.

The initiative is expected to strengthen CMSME operations, enhance production and business capacity, generate direct and indirect employment, and contribute to accelerating overall economic activity in the country, the release added.

Nahid Rahman, executive director of Bangladesh Bank, and Shahanaj Pervin, additional director, along with other officials from both organisations, were also present at the signing ceremony.