Midland Bank PLC has entered into a refinance participation agreement with Bangladesh Bank for the implementation of two financing programmes designed to support cluster-based businesses and cottage, micro, small and medium enterprises (CMSMEs) in Bangladesh.
The agreement relates to the BDT 3,000 crore Cluster Financing Scheme and the BDT 1,500 crore Financial Sector Fund for the Development of Micro, Small, and Medium Enterprises (FSFDMSME), according to a media statement issued following the signing ceremony.
The agreement signing took place on 18 May 2026 at the Jahangir Alam Conference Hall of Bangladesh Bank. Deputy Governor Nurun Nahar attended the event as chief guest.
Under the refinance arrangement, Midland Bank will extend loans to eligible cluster entrepreneurs and CMSME enterprises at a concessional interest rate of 7 per cent. The financing support will include both term lending and working capital facilities aimed at assisting small businesses in expanding operations and maintaining business activities.
The initiative forms part of Bangladesh Bank’s broader efforts to improve financial access for small-scale enterprises and promote balanced economic development across different regions of the country. Cluster financing programmes generally focus on geographically concentrated groups of businesses engaged in similar economic activities, enabling financial institutions to support production networks more efficiently.
Overview of the Refinance Agreement
| Item | Information |
|---|---|
| Participating bank | Midland Bank PLC |
| Regulatory authority | Bangladesh Bank |
| Cluster Financing Scheme | BDT 3,000 crore |
| FSFDMSME fund | BDT 1,500 crore |
| Target sector | Cluster-based and CMSME enterprises |
| Lending rate | 7% |
| Types of financing | Term loans and working capital |
| Agreement date | 18 May 2026 |
Officials said the programme is expected to encourage entrepreneurship, strengthen financial inclusion and create employment opportunities by improving access to affordable financing for smaller enterprises. The CMSME sector remains an important contributor to Bangladesh’s industrial output, employment generation and domestic economic activity.
Nawshad Mustafa, Director of the SME Special Programmes Department of Bangladesh Bank, and Imtiaz U. Ahmed, Managing Director and Chief Executive Officer of Midland Bank PLC, signed and exchanged the agreement documents on behalf of their respective organisations.
Senior representatives from both institutions attended the ceremony, including Mohd. Javed Tarek Khan, Head of Institutional Banking Division of Midland Bank PLC, and Ahsan Jamil Hossain, Head of SME Division of Midland Bank PLC.
The refinancing arrangement will allow Midland Bank to channel lower-cost funds to eligible businesses under Bangladesh Bank’s refinance mechanism, with the objective of supporting the growth and sustainability of the country’s CMSME sector.