The government is borrowing USD $ 300 million from the Asian Infrastructure Investment Bank (AIIB) to provide working capital loans to the companies of cottage, micro, small and medium enterprise (CMSMEs) sector.
Meanwhile, the Ministry of Finance and AIIB have signed an agreement to implement the loan project through a third party on-lending basis.
The government has taken up a project titled Covid-19 Emergency and Crisis Response Facility to implement the loan project within the 2023-24 fiscal.
Bangladesh Bank has already started its activities for the current financial year. Entrepreneurs in the CMSME sector will get this working capital for a period of 1-year with 4 percent interest and 1 percent service charge.
Source: United News of Bangladesh