AB Bank PLC has signed a memorandum of understanding with Bangladesh Bank under the Tk 3,000 crore (Tk 30 billion) refinance fund created to build agriculture-based special economic development centres in the north of the country — the Rajshahi and Rangpur divisions. The bank announced the agreement in a press release on Sunday, 20 September.

At a ceremony at the central bank's head office, AB Bank's acting managing director Z M Babar Khan and A K M Saiduzzaman, director of Bangladesh Bank's Agricultural Credit Department-2, signed the agreement. Deputy Governor Dr Md Kabir Ahammad was chief guest and Executive Director and spokesperson Arif Hossain Khan special guest.

Under the agreement AB Bank will disburse low-interest loans on easy terms to farmers, agricultural entrepreneurs and the cottage, micro, small and medium enterprise (CMSME) sector in the northern districts, which the bank says will support rural employment and the country's food security.

Also present were Joynal Abedin, additional director of Agricultural Credit Department-2, and AB Bank's deputy managing director and chief business officer Iftekhar Enam Awal, along with senior officials of both institutions.

Loans from central-bank refinance funds are normally priced below market rates; rice, potato, maize and vegetable growers in the north, and the small processors who buy from them, can seek the facility through AB Bank branches. The report is by Azam Ali Khan of Arthosuchak.

Source: Arthosuchak