Prime Bank joins central bank's BDT 5,000cr CMSME refinance scheme

Dhaka : Prime Bank PLC has joined Bangladesh Bank's BDT 5,000 crore Working Capital Refinance Fund for cottage, micro, small and medium enterprises (CMSMEs), allowing eligible businesses to access working capital financing at comparatively lower rates.

The bank signed a participation agreement with Bangladesh Bank recently at the central bank's headquarters in Dhaka. Md Jobdul Islam, Director of Bangladesh Bank's SME and Special Programs Department, and M Nazeem A. Choudhury, Additional Managing Director of Prime Bank, signed the agreement.

Bangladesh Bank Deputy Governor Md Anisur Rahman attended the signing ceremony as chief guest. Executive Director Nahid Rahman                  and Additional Director Shahanaj Parveen were also present.

The refinance facility is part of Bangladesh Bank's BDT 60,000 crore stimulus package designed to support CMSMEs facing working capital constraints. Under the scheme, eligible operational businesses can receive financing at interest rates of up to 9 percent to maintain or restore production, services and other commercial              activities.

The central bank expects the initiative to support business continuity, expand productive capacity and generate direct and indirect employment.

Prime Bank said its participation will enable the lender to extend more affordable working capital support to CMSME entrepreneurs, with financing aimed at helping businesses maintain operations, increase production and sustain growth.

The initiative comes as smaller businesses continue to seek easier access to financing for day-to-day operations and expansion.