Pubali Bank joins BB’s Tk 3,000cr refinance scheme

Pubali Bank PLC has signed a participation agreement with Bangladesh Bank to join its Tk 3,000 crore Export Diversification Refinance Scheme, aimed at reducing the country’s dependence on the readymade garment (RMG) sector and promoting export diversification.

AKM Nurunnabi, director of the Sustainable Finance Department at Bangladesh Bank, and Mohammad Ali, managing director of Pubali Bank PLC, signed the agreement at a ceremony at BB headquarters in Motijheel, Dhaka recently, according to a press release.

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The scheme seeks to broaden the country’s export base, enhance the production capacity of promising export-oriented industries, develop new export products and markets, and strengthen the competitiveness of the export sector.

Under the Export Policy 2024-2027, industries categorised as “Highest Priority Sectors” and “Special Development Sectors” will be eligible for financing. Priority will also be given to exporters using locally produced raw materials.

Bangladesh Bank will provide refinancing to participating banks at 4 percent interest, while eligible exporters can obtain financing through banks at a maximum interest rate of 7 percent.

The refinancing facility will have a maximum tenure of three years, including a grace period of up to six months.

Pubali Bank said its participation would help extend financing on favourable terms to promising export-oriented industries and support the development of new and potential export sectors beyond the country’s traditional export base.

The initiative is also expected to boost foreign exchange earnings, export competitiveness and employment.

Mohammad Isha, deputy managing director of Pubali Bank PLC, and Md Nazrul Islam Sarker, general manager and head of the RMG division, along with senior officials of both institutions, were also present.