MTB joins BB's export diversification refinancing scheme

Dhaka : Mutual Trust Bank PLC (MTB) has joined Bangladesh Bank's BDT 3,000 crore refinancing program aimed at supporting new export-oriented industries and reducing the country's dependence on a narrow range of products.

The bank signed a participation agreement with Bangladesh Bank on September 1, allowing it to provide financing to eligible businesses under the Refinance Scheme for Export Diversification.

Chowdhury Akhter Asif, Additional Managing Director and Chief Business Officer of MTB; and A.K.M. Nurunnabi, Director of Bangladesh Bank's Sustainable Finance Department; signed the agreement for their respective institutions.

Bangladesh's export earnings have traditionally been concentrated in a limited number of products, leaving the sector exposed to changes in demand and market conditions. The refinancing program is intended to direct more affordable financing toward industries that could expand the country's export basket.

Jute and leather are among the sectors highlighted under the initiative because they can use substantial amounts of locally sourced raw materials while serving international markets.

According to MTB, access to financing could help eligible companies increase production, develop exportable products, enter new markets and generate employment.

MTB said its participation will support businesses seeking to develop new products and expand into overseas markets.