Islamic Finance

Islamic Development Bank lends Bangladesh $47m to supplement stimulus packages for SMEs

Published 17 Jan,2021 via The Financial Express - The Islamic Development Bank (IsDB) has come forward with a US$47 million credit line to support the country's small and medium enterprises (SMEs), hit hard by the pandemic, but abandoned by banks as well.

The Jeddah-based Islamic lender has approved US$47-million (around Tk 3.98 billion) instalment sale financing for Bangladesh as a line of finance to support the SMEs.

IsDB President Dr Bandar M H Hajjar has recently approved the fund, according to an official.

The financing facility, which is to be extended to the ministry of finance as sovereign financing and implemented by Bangladesh Bank, will directly contribute to the stimulus packages launched by the government to support SMEs.

Husne Ara Shikha, general manager (SME and Special Programme Department) of Bangladesh Bank, said the central bank will refinance Shariah-based commercial banks and other commercial banks with Islamic windows in the course of its scheme.

She said the government has signed an agreement with the IsDB for the credit, which might be disbursed soon.

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