Dhaka Bank, SME Foundation to expand CMSME financing

Dhaka Bank PLC has signed participation agreements with SME Foundation under the Food Value Chain Improvement Project (FVCIP), funded by JICA, and the Revolving Fund through the Special SME Credit Wholesaling Programme.

Anwar Hossain Chowdhury, managing director of the foundation, and AKM Shahnawaj, additional managing director of the bank, signed the agreements at a hotel in Dhaka recently, according to a press release.

Khandakar Abdul Muktadir, minister for industries, attended the signing ceremony as the chief guest.

Under the agreements, Dhaka Bank will provide financing support to cottage, micro, small and medium enterprises (CMSMEs) across the country at concessional interest rates.

The Food Value Chain Improvement Project (FVCIP) will provide financing to CMSMEs, with preference given to women entrepreneurs, at an interest rate of 9 percent.

The Special SME Credit Wholesaling Programme will facilitate financing for micro and small enterprises (SMEs) in the manufacturing and service sectors at an interest rate of 8 percent.

Md Mokhtar Ahmed, secretary of the Ministry of Expatriates’ Welfare and Overseas Employment; Abdun Naser Khan, secretary of the Ministry of Industries; and Max Tunon, country director for Bangladesh at the International Labour Organization, attended the event.

Md Mahbubur Rahman Palash, executive vice-president and head of the MSME and emerging business division of the bank, along with managing directors and officials of participating banks, senior officials from SME Foundation, the ILO and various government agencies, and entrepreneurs, were also present at the ceremony.