Midland Bank PLC on Tuesday signed participation agreements with Bangladesh Bank under two refinance schemes aimed at expanding financing for cottage, micro, small and medium enterprises (CMSMEs) and cluster-based businesses.
Under the agreements, Midland Bank will extend financing to eligible CMSME and cluster entrepreneurs at a concessional interest rate of 7 per cent under Bangladesh Bank refinance facilities.
Both term loans and working capital support will be provided to strengthen small business growth and expansion across the country.
Midland Bank said it will implement the Tk3,000 crore Cluster Financing Scheme and the Tk1,500 crore Financial Sector Fund for the Development of Micro, Small and Medium Enterprises (FSFDMSME) to support entrepreneurship and business expansion across priority sectors.
The agreement signing ceremony was held on Monday at the Jahangir Alam Conference Hall of Bangladesh Bank.
Bangladesh Bank Deputy Governor Nurun Nahar attended the ceremony as chief guest, while SMESPD Director Nawshad Mustafa and Midland Bank Managing Director and CEO Imtiaz U Ahmed signed and exchanged the documents on behalf of their respective institutions.
The initiative is expected to enhance financial inclusion, promote entrepreneurship development and generate employment, with CMSMEs remaining a key driver of Bangladesh’s economic growth.
