BRAC Bank joins Tk3,000cr export diversification scheme

BRAC Bank has joined Bangladesh Bank's Tk3,000 crore Export Diversification Refinance Scheme (EDRS), which provides financing for eligible export-oriented businesses at a maximum interest rate of 7%.

The bank signed a Participating Financial Institution (PFI) Agreement with Bangladesh Bank at the central bank's head office in Dhaka on 1 September, during an event for which it issued a press release.

Introduced by Bangladesh Bank's Sustainable Finance Department, the scheme aims to expand the country's export base and support emerging and non-traditional export sectors while promoting export diversification in line with the Export Policy 2024–2027, particularly by supporting sectors that use locally sourced raw materials.

It also seeks to promote export diversification in line with the Export Policy 2024–2027, particularly by supporting sectors that use locally sourced raw materials.

The scheme also seeks to reduce concentration in export markets and strengthen the global competitiveness of emerging sectors.

Under the arrangement, Bangladesh Bank will refinance participating banks.

BRAC Bank can extend financing to export-oriented businesses for up to three years, including a six-month grace period.

BRAC Bank Additional Managing Director and Head of Wholesale Banking Md Shaheen Iqbal, CFA, and Bangladesh Bank Sustainable Finance Department Director AKM Nurunnabi exchanged the agreement documents.

BRAC Bank Managing Director and CEO Tareq Refat Ullah Khan said, "This refinancing facility will enable BRAC Bank to provide exporters with affordable financing to develop overseas markets for non-traditional products and broaden Bangladesh's export basket."

"By supporting export diversification, the scheme will help strengthen economic resilience, create employment and contribute to sustainable growth," he said.

He encouraged eligible exporters to use the facility through BRAC Bank and help expand the country's export earnings.