Bangladesh Bank and Prime Bank PLC have signed participation agreements under two refinance initiatives to strengthen access to finance for small businesses. The agreements were signed under the Cluster Financing Scheme and the Financial Sector Fund for the Development of MSMEs.

The initiatives aim to support cottage, micro, small and medium enterprises, which are widely regarded as the backbone of Bangladesh’s economy. By improving access to affordable and timely financing, the schemes seek to promote entrepreneurship, create jobs and support sustainable industrial growth across the country. The Financial Sector Fund for the Development of MSMEs is a Tk1,500 crore revolving fund supported by Bangladesh Bank to facilitate business expansion and modernisation through competitive financing terms.

The Tk3,000 crore Cluster Financing Scheme focuses on developing geographically concentrated business clusters, enabling enterprises to benefit from shared resources, improved efficiency and stronger market linkages. The signing ceremony was attended by senior officials from both institutions. Representing Bangladesh Bank were Deputy Governor Nurun Nahar, Executive Director Husne Ara Shikha and Director Nawshad Mustafa. Prime Bank PLC was represented by Faisal Rahman, Acting Chief Executive Officer; M Nazeem A Choudhury, Additional Managing Director; and Shaikh Nur Alam, Head of Small Business and Refinance.

Speaking at the event, Faisal Rahman said CMSMEs are central to the country’s economy and their growth is essential for inclusive development. “Through these refinance schemes, we are not just extending financing – we are enabling dreams, strengthening entrepreneurs and supporting businesses to grow in a sustainable way,” he said. “Prime Bank is particularly keen on supporting cluster-based enterprises, where collective strength can unlock greater productivity, innovation and market access,” he added. Bangladesh Bank and Prime Bank reaffirmed their commitment to ensuring effective implementation of the schemes in line with regulatory guidelines, with a focus on transparency, efficiency and meaningful impact for CMSME entrepreneurs across Bangladesh.