The Islamic Development Bank (IDB) will invest in local banks and financial institutions as part of its broader plan to support private sector growth, officials said.
The Islamic Corporation for Development (ICD), the private sector arm of the Jeddah-based multilateral lender, will extend U$ 70 million Global Line of Financing (LoF) facility to commercial banks and financial institutions (FIs) in the country, they said.
The ICD has taken the initiative with a view to stimulating the country's large, micro, small and medium enterprises (MSMEs) sectors.
"Further to our previous missions in Bangladesh, ICD has processed a number of applications from both Islamic and conventional commercial banks and financial institutions of the country to avail funding for MSMEs under the ICD's line facility. Based on initial assessment of selected financial institutions, ICD has already started negotiations with selected banks on initial terms and conditions of the Line of Finance (LoF) facility," the ICD said in a note. An ICD mission is scheduled to visit Bangladesh from August 11 to August 13, a senior official of the Economic Relations Division said.
The main objective of the visit is to meet with the selected local financial institutions to have a detailed discussion on the structure of the proposed LoF and finalise negotiations on the key terms and conditions of the line facility, the official said.
The team will have meetings with officials of the IDB governor's office and the central bank to discuss latest developments in the country's economy and financial industry in general and structure of ICD's proposed LoF facility in particular, he said.
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