IFC, a member of the World Bank Group, is investing $50 million in City Bank PLC to help SMEs in Bangladesh grow, create jobs, and boost economic recovery, says a press release.
On this occasion, an agreement signing ceremony was recently held at the head office of City Bank.
The investment from IFC will help close the gap in SME financing by providing City Bank with funds to extend new loans to SMEs, particularly those involved in import and export. This partnership comes at a critical time at a critical juncture for the financial sector as inflation and currency challenges have made it harder for businesses to access affordable credit. Strengthening SME financing will sustain operations, maintain jobs, and support key sectors in the economy.
City Bank’s Managing Director & CEO Mashrur Arefin expressed appreciation, saying, ‘We are grateful for IFC’s support. This investment will help small businesses overcome challenges and play a bigger role in Bangladesh’s future.’
Allen Forlemu, IFC Regional Industry Director of Financial Institutions Group for Asia & Pacific said, ‘Small businesses are essential to Bangladesh’s economy. By supporting them, we aim to improve access to finance and promote inclusive growth.’
Others present at the occasion were Aziz Al Kaiser, Chairman of City Bank Plc, Martin Holtmann, Country Manager, Bangladesh, Bhutan and Nepal of IFC among others of both the organisations.
Building on a decade-long commitment to strengthening Bangladesh’s private sector, IFC has invested $765 million in local banks since 2014 to enhance SME financing.