MTB joins BB's Tk5,000cr refinance fund for CMSMEs
Mutual Trust Bank PLC (MTB) has joined Bangladesh Bank's Tk5,000 crore working capital refinance fund to support operating cottage, micro, small, and medium enterprises (CMSMEs) facing liquidity constraints.
The initiative aims to help viable enterprises operate at full capacity, ensure business continuity, generate employment, and foster sustainable growth in the sector, according to a press release.
The agreement was signed at the Bangladesh Bank headquarters in the capital on 8 September, 2026. Bangladesh Bank's Director of the SME and Special Programmes Department, Md Zabdul Islam, and Mutual Trust Bank's Additional Managing Director and Chief Business Officer, Chowdhury Akhtar Asif, exchanged documents on behalf of their respective organisations.
Keep updated, follow The Business Standard's Google news channel
Deputy Governor of Bangladesh Bank Md Anis Ur Rahman attended the ceremony as the chief guest. Executive Director Nahid Rahman and Additional Director Shahanaj Pervin of Bangladesh Bank, along with the Head of the SME and Agri Banking Division at Mutual Trust Bank, Sanjib Kumar Dey, were also present.
The revolving fund, established by the central bank from the surplus liquidity of scheduled banks, has a tenure of three years.
Under the scheme, participating banks will receive refinance facilities from Bangladesh Bank at an interest rate of 4%, while the customer-level lending rate will be capped at 9%. Borrowers may also receive a grace period of three to six months, subject to conditions.
The fund is intended for operational CMSMEs that cannot run at full capacity due to inadequate working capital. Borrowers classified by the Credit Information Bureau (CIB) will not be eligible under the scheme.
Through this partnership, MTB seeks to widen access to affordable credit for small businesses, facilitating capacity expansion and employment creation across the country.
