Bangladesh Bank and Prime Bank have recently signed participation agreements under two key refinance initiatives- the Cluster Financing Scheme and the Financial Sector Fund for the Development of MSMEs (FSFDMSME) for strengthening access to finance for small businesses.

These initiatives reflect a shared commitment to empowering Cottage, Micro, Small and Medium Enterprises (CMSMEs), widely regarded as the backbone of Bangladesh’s economy. By improving access to affordable and timely financing, the schemes aim to fuel entrepreneurship, create jobs and support sustainable industrial growth across the country. The FSFDMSME, a BDT 1,500 crore revolving fund supported by Bangladesh Bank, is designed to facilitate business expansion and modernization with competitive financing terms. Complementing this, the 3,000 Crore Cluster Financing Scheme focuses on developing geographically concentrated business clusters, enabling enterprises to benefit from shared resources, improved efficiencies, and stronger market linkages.

The agreement signing ceremony was attended by senior officials from both institutions. Representing Bangladesh Bank were Deputy Governor Nurun Nahar; Executive Director Husne Ara Shikha and Director Nawshad Mustafa. Prime Bank PLC. was represented by Faisal Rahman, Acting Chief Executive Officer; M. Nazeem A. Choudhury, Additional Managing Director; and Shaikh Nur Alam, Head of Small Business and Refinance.

Speaking at the event, Faisal Rahman, Acting CEO of Prime Bank PLC., shared:
“CMSMEs are at the heart of our economy, and their growth is essential for inclusive development. Through these refinance schemes, we are not just extending financing - we are enabling dreams, strengthening entrepreneurs, and supporting businesses to grow in a sustainable way. Prime Bank is particularly keen on supporting cluster-based enterprises, where collective strength can unlock greater productivity, innovation, and market access.”

Both Bangladesh Bank and Prime Bank reaffirmed their commitment to ensuring effective implementation of these schemes in line with regulatory guidelines, with a focus on transparency, efficiency, and meaningful impact for CMSME entrepreneurs across Bangladesh.