The Islamic Development Bank (IsDB) has approved a $47 million for Bangladesh as a line of finance to support small and medium enterprises (SMEs).
This is part of the envelope of IsDB Group Strategic Preparedness and Response Program (SPRP) for COVID-19, specifically under its Restore track, for medium-term actions aimed at addressing the peak effects of the pandemic on the economy.The line of finance for SMEs is designed to support Bangladesh's economic stimulus packages in its national response priorities, including enhancing the resilience of SMEs under the COVID-19 crisis by increasing their access to finance, said a press release.
IsDB Regional Manager, Regional Hub Dhaka, Muhammad Nassis Bin Sulaiman said "This line of finance will sustain business activities and operations of existing SMEs, open new export opportunities and improve the livelihoods of thousands in response to the COVID-19 pandemic."
SMEs in Bangladesh are considered key vehicles for employment promotion, value chain development, economic and social inclusion and resilience under pandemic crises.
The financing facility will directly contribute to the stimulus packages launched by the Government of Bangladesh to support its SMEs.
Through its refinancing scheme, Bangladesh Bank will on-lend to participating financial institutions through Shariah-based commercial banks and other commercial banks with Islamic windows.
The new credit facility to the Bangladesh Bank will provide financial services to at least 348 SMEs affected by COVID-19, 20 percent of which are led by women and youth, and will positively impact approximately 34,740 workers by preserving their jobs.