Al-Arafah Islami Bank gets BB refinance facility for CMSMEs

Al-Arafah Islami Bank PLC has signed an agreement with Bangladesh Bank under the BB’s Tk 5,000 crore refinance fund to provide affordable working capital financing to cottage, micro, small and medium enterprises (CMSMEs), aimed at boosting employment and sectoral development.

Md Zabdul Islam, director of the SME & Special Programmes Department at the central bank, and Monirul Islam, senior vice-president and head of the SME Business Division of Al-Arafah Islami Bank PLC, signed the agreement at BB headquarters in Dhaka recently, according to a press release.

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Under the revolving refinance scheme, businesses facing difficulties in maintaining their operations due to working capital shortages will be eligible for financing at a 9 percent profit rate.

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

Financing under the refinance fund established by Bangladesh Bank is expected to further accelerate business activities in the CMSME sector while contributing to increased production, new employment opportunities and greater contribution by the sector to the country’s overall economic activity.

Nahid Rahman, executive director of the central bank; Shahanaj Parveen, additional director; and Sheikh Asadul Haque, senior assistant vice-president and head of the Agriculture Business and Refinance Unit at Al-Arafah Islami Bank PLC, were also present.