MTB joins BB's cluster financing scheme, FSFDMSME initiative

Mutual Trust Bank PLC (MTB) has signed a participation agreement with Bangladesh Bank to implement the Tk 3,000 crore Cluster Financing Scheme and the Tk 1,500 crore Financial Sector Fund for the Development of Micro, Small and Medium Enterprises (FSFDMSME).

The bank aims to nurture entrepreneurship and support cluster-based and micro, small and medium enterprises across the country through the initiatives, reads a press statement.

The deal signing ceremony was held on May 18 at Bangladesh Bank, where Nawshad Mustafa, director of SMESPD of Bangladesh Bank, and Syed Mahbubur Rahman, managing director and CEO of MTB, exchanged the agreement documents on behalf of their respective organisations in the presence of Nurun Nahar, deputy governor of Bangladesh Bank and chief guest of the event.

The event was also attended by Husne Ara Shikha, executive director of Bangladesh Bank, Sanjib Kumar Dey, head of SME and Agri Banking Division of MTB, and other officials of Bangladesh Bank.

Under the agreement, MTB will provide loans to cluster entrepreneurs at a concessional interest rate of 7 percent under Bangladesh Bank's refinancing scheme. Financing facilities for micro, small and medium entrepreneurs will also be extended at the same rate.

In addition to financing support, MTB will provide training, technical assistance and advisory services to help entrepreneurs grow and sustain their businesses.