Prime Bank PLC has signed a $90 million term loan agreement with the International Finance Corporation (IFC), a member of the World Bank Group, aimed at supporting export and import-based MSMEs in Bangladesh.
This investment aims to significantly enhance financial access for MSMEs, thereby catalyzing economic growth and resilience across the country.
Bangladesh's SME sector, comprising nearly 10 million enterprises and engaging 24 million people, plays a crucial role, contributing 25% to the GDP presently and projected to increase to 35% by 2030.
While these enterprises have encountered challenges, including inflation and financial constraints, there is significant potential for growth and development, with efforts underway to address the estimated $39 billion financing gap.
IFC’s investment targets bridging this gap by bolstering Prime Bank’s capacity to extend financing to MSMEs.
Hassan O. Rashid, CEO of Prime Bank, and Allen Forlemu, IFC’s Regional Industry Director, FIG–Asia and Pacific, recently signed the agreement on behalf of their respective organizations.
“IFC’s support underscores confidence in Prime Bank and reflects resilience in the Bangladesh economy. Our decade-long partnership with IFC has been instrumental in expanding our operations. We are grateful for IFC’s continued support,” said Prime Bank CEO, Hassan O. Rashid.
Allen Forlemu, IFC Regional Industry Director of Financial Institutions Group for Asia & Pacific said, "Our investment in Prime Bank highlights our commitment to fostering job creation and economic growth in Bangladesh, particularly through empowering MSMEs, including those led by women."
