MTB joins Tk3,000cr BB refinance scheme for export diversification
Mutual Trust Bank PLC (MTB) has signed a participation agreement with Bangladesh Bank under the Tk3,000 crore "Export Diversification Refinance Scheme" to finance promising export-oriented sectors and support diversification of Bangladesh's export base.
The agreement, signed on 1 September, will enable MTB to finance eligible export-oriented enterprises seeking to expand production capacity, develop exportable products, and explore new international markets, according to the press release.
MTB Additional Managing Director and Chief Business Officer Chowdhury Akhtar Asif and Bangladesh Bank Sustainable Finance Department Director AKM Nurunnabi signed the agreement on behalf of their respective organisations.
Keep updated, follow The Business Standard's Google news channel
Bangladesh's export sector has historically remained concentrated in a limited number of products, resulting in both product and market concentration risks.
Against this backdrop, Bangladesh Bank introduced the refinance scheme to facilitate financing for promising export-oriented sectors with the potential to broaden the country's export basket.
Sectors such as jute and leather, which can source a significant proportion of their raw materials domestically, can generate foreign exchange and expand Bangladesh's presence in international markets.
However, financing constraints have remained a barrier to developing the potential of several export-oriented sectors.
The scheme is therefore intended to channel affordable financing towards eligible industries, helping businesses increase production capacity, develop exportable products, enter new markets and generate employment.
It also aims to contribute to a more diversified and resilient export sector and a more balanced trade environment.
MTB Head of Sustainable Finance Department Tahmina Zaman Khan; Financial Institutions Services Department Unit Head ATM Nesarul Hoque; Bangladesh Bank Additional Director Md Abu Alam Mohsin; and Joint Director Sajib Kumar Das attended the agreement-signing ceremony.
Through its participation in the scheme, MTB said it aims to expand access to finance for promising export-oriented enterprises and support the development of new export products, industries and international markets.
