Prime Bank, IFC sign $90m deal to support MSMEs

---

FE Desk | Published: July 14, 2024 23:51:34

---

Prime Bank PLC has signed a $90 million term loan agreement with the International Finance Corporation (IFC) -- a member of the World Bank Group -- to support export and import-based micro, small, and medium-sized enterprises (MSMEs) in Bangladesh, said a press release.
Hassan O Rashid, CEO of Prime Bank, and Allen Forlemu, IFC's regional industry director for Financial Institutions Group - Asia and Pacific, recently signed the agreement.
Bangladesh's SME sector, comprising nearly 10 million enterprises and employing 24 million people, is a crucial driver of the economy, contributing 25 per cent to GDP and projected to reach 35 per cent by 2030.
While these businesses face challenges like inflation and financial constraints, they also offer important growth potential. Addressing the financing gap is essential for their development, according to the press release.
It said that IFC's investment aims to bridge this gap by strengthening Prime Bank's capacity to lend to MSMEs.
"IFC's support underscores confidence in Prime Bank and reflects resilience in the Bangladesh economy. Our decade-long partnership with IFC has been instrumental in expanding our operations," said Prime Bank CEO Hassan O Rashid.
Allen Forlemu, IFC regional industry director of Financial Institutions Group for Asia & Pacific said, "Our investment in Prime Bank highlights our commitment to fostering job creation and economic growth in Bangladesh, particularly through empowering MSMEs, including those led by women. By enhancing financial access and strengthening the financial ecosystem, we aim to drive inclusive growth and fortify Bangladesh's economic foundations."