Line of Finance to Support SMEs under the IsDB SPRP for COVID-19

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Tuesday, 19 Jan 2021 03:14:30 pm

Line of Finance to Support SMEs under the IsDB SPRP for COVID-19

 Line of Finance to Support SMEs under the IsDB SPRP for COVID-19

Jeddah, Kingdom of Saudi Arabia- 18th January 2021 - The Islamic Development Bank (IsDB) has approved a US$47-million instalment sale financing 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. 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, which will 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 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.