Bank Asia to lend to CMSMEs at 9% under BB fund

Bank Asia PLC has signed a participation agreement with Bangladesh Bank to provide loans to cottage, micro, small and medium enterprises (CMSMEs) at concessional interest rates and on easy terms under the Tk 5,000 crore working capital refinance fund for the CMSME sector.

Md Zabdul Islam, director of the SME and Special Programmes Department of Bangladesh Bank, and Syed Zulkar Nayen, deputy managing director of Bank Asia 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 has been established by Bangladesh Bank under the Tk 60,000 crore stimulus package aimed at providing necessary working capital loans/investment to CMSME enterprises, enabling them to operate their production, service and business activities at full capacity.

It is also expected to contribute to creating direct and indirect employment and help accelerate the country’s economic recovery.

Under the fund, generally viable CMSME enterprises that are unable to operate at full capacity due to a shortage of working capital will be eligible for financing at an interest rate of 9 percent.

Nahid Rahman, executive director of Bangladesh Bank; Shahanaj Pervin, additional director; and Mohammad Saifuddowla, head of small business at Bank Asia PLC, were also present at the signing ceremony.