Govt borrows $300 million from AIIB to refinance CMSMEs
FILE PHOTO: The sign of Asian Infrastructure Investment Bank (AIIB) is pictured at its headquarters in Beijing, China July 27, 2020. REUTERS/Tingshu Wang/File Photo
The government is borrowing $300 million from the Asian Infrastructure Investment Bank (AIIB) to provide working capital loans to the companies of cottage, micro, small and medium enterprise (CMSMEs) sector.
Meanwhile, the Ministry of Finance and AIIB have signed an agreement to implement the loan project through a third party on-lending basis.
The government has taken up a project titled "Covid-19 Emergency and Crisis Response Facility" to implement the loan project within FY2023-24.
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Bangladesh Bank has already started its activities for the current financial year. Entrepreneurs in the CMSME sector will get this working capital for a period of one year with 4% interest and 1% service charge.
