Prime Bank to finance SMEs under Tk 5,000cr BB fund

Prime Bank PLC has signed an agreement with Bangladesh Bank to participate in the central bank’s Tk 5,000 crore working capital refinance fund for the cottage, micro, small and medium enterprise (CMSME) sector.

The fund aims to provide working capital financing to eligible CMSMEs at affordable interest rates and on easier terms, according to a press release.

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Md Jobdul Islam, director of the SME and Special Programmes Department of Bangladesh Bank, and M Nazeem A Choudhury, additional managing director of Prime Bank PLC, signed the agreement at the central bank’s headquarters in Motijheel, Dhaka recently.

Md Anisur Rahman, deputy governor of Bangladesh Bank, attended the signing ceremony as the chief guest. Nahid Rahman, executive director, and Shahanaj Parveen, additional director of Bangladesh Bank, were also present.

The refinance fund was established under Bangladesh Bank’s Tk 60,000 crore stimulus package to provide working capital loans or investment to CMSMEs, helping them operate their production, service and business activities at full capacity.

Eligible CMSMEs facing working capital shortages will have access to financing at interest rates of up to 9 percent.

Prime Bank said its participation would further expand access to affordable working capital financing, helping CMSMEs strengthen operations, increase production capacity, sustain growth and generate employment.

Nahid Rahman, executive director of Bangladesh Bank, and Shahanaj Parveen, additional director, were also present at the event.