IFIC Bank to provide SME loans under Tk 5,000cr refinance fund

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

Md Zabdul Islam, director of the SME and Special Programmes Department of Bangladesh Bank, and Syed Mansur Mustafa, managing director of IFIC Bank PLC, signed the agreement at the central bank’s headquarters in Motijheel, Dhaka recently, according to a press release.

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Md Anis Ur Rahman, deputy governor of Bangladesh Bank, attended the ceremony as the chief guest.

The fund was established as part of the Tk 60,000 crore incentive package announced by the central bank.

The fund aims to provide working-capital loans/investment to CMSMEs so that they can operate at full capacity in production, services and business activities. It is also intended to create direct and indirect employment and help accelerate the country’s sluggish economy.

Under the fund, operational CMSMEs unable to operate at full capacity due to a shortage of working capital will be eligible for financing at an interest rate of 9 percent. IFIC Bank said participation in the refinance fund will expand its financing coverage in the CMSME sector and strengthen its contribution to financial inclusion and sustainable economic development.

The bank provides banking and financing services through its extensive network of branches and sub-branches across the country. Nahid Rahman, executive director of Bangladesh Bank; Shahanaj Pervin, additional director; Helal Ahmed, chief of branch business at IFIC Bank PLC; and Fariha Haider, head of SME, were also present at the signing ceremony.