Mutual Trust Bank PLC (MTB) has joined Bangladesh Bank’s Tk3,000 crore refinance fund aimed at creating a special agriculture-based economic hub in the northern region of the country.
The initiative is designed to strengthen the agricultural value chain by supporting agricultural production, preservation, transportation, marketing, processing, value addition, infrastructure development, and export-oriented agricultural activities.
The fund will cover the districts under the Rajshahi and Rangpur divisions.
The signing ceremony was held on August 31 at Bangladesh Bank, where AKM Sayduzzaman, director of Bangladesh Bank, and Chowdhury Akhtar Asif, managing director (acting) of Mutual Trust Bank PLC, exchanged the agreement documents on behalf of their respective organizations in the presence of Md Kabir Ahmed, deputy governor of Bangladesh Bank and chief guest of the event.
Sanjib Kumar Dey, head of SME & agri banking division of MTB, along with other officials from Bangladesh Bank, was also present at the signing ceremony.
Under the scheme, participating banks will receive refinance facilities from Bangladesh Bank at an interest/profit rate of 4%, while the customer-level interest/profit rate will be capped at 9%.
The scheme has a tenure of three years from the date of issuance of the circular.
The fund has been allocated across four major areas: 15% for agricultural production, 35% for preservation, transportation, marketing and infrastructure, 35% for production and processing of agro/agriculture-based products, and 15% for export of agricultural and agro-based products.
Through its participation in the initiative, MTB aims to contribute to expanding access to finance for agriculture and agriculture-based businesses in the northern region and support the development of a more efficient and sustainable agricultural value chain.
