BRAC Bank and Bangladesh Bank have signed a Participation Agreement under the central bank’s Tk 3,000 crore revolving Refinance Scheme, a move aimed at creating a special agriculture-based economic centre in northern Bangladesh as stated in the Press Release.
The scheme seeks to increase agricultural production, strengthen agricultural value chains, create employment, and support income-generating activities in the districts under the Rajshahi and Rangpur divisions, unlocking the region’s economic potential. From now, farmers can access financing under the scheme at a maximum interest rate of 7%.
To support the entire agricultural journey, the scheme will finance four key stages: production and preservation; transportation, marketing and infrastructure; manufacturing and processing of agriculture-based products; and finally, export.
From the fields to the factory floor, the facility is designed to reach every corner of the agricultural economy, covering crop production, fisheries, livestock, agricultural machinery, cold-chain facilities, warehouses, food processing, dairy processing, seed production and other agriculture-based industries.
The agreement was signed at a ceremony held at Bangladesh Bank’s head office. Representing the central bank were Deputy Governor Dr. Md. Kabir Ahmed, Executive Director and Spokesperson Arif Hossain Khan, and Chowdhury Liakat Ali, Director of the Sustainable Finance Department, while BRAC Bank was represented by Kazi Dilruba Akter, Head of SME Business Support, and Liton Kumar Biswas, Senior Relationship Manager for MFI and Agriculture Finance.
Backed by its focus on inclusive finance and agricultural development, BRAC Bank’s participation in the scheme is set to support farmers, rural entrepreneurs and agriculture-based businesses across the northern region.
Syed Abdul Momen, Additional Managing Director and Head of SME Banking at BRAC Bank, said, “The agricultural sector, especially our farmers, is the driving force behind the country’s economic growth. At BRAC Bank, we have always tried to finance them at a lower cost. Bangladesh Bank’s refinance scheme will help us strengthen our agri-initiatives, giving farmers easier access to the entire value chain, from financing to selling their final products, and energising the rural economy.”
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