Citizens Bank PLC has finalised a participation agreement with Bangladesh Bank, the regulatory monetary authority, to implement two major credit interventions aimed at supporting the micro, small, and medium enterprise (MSME) sectors.
The agreement, executed at the central bank’s head office in Dhaka, authorises Citizens Bank to act as a primary lending partner for the BDT 3,000 Crore Cluster Financing Scheme and the BDT 2,000 Crore Agro Processing Fund. According to an official corporate announcement, the partnership is designed to improve liquidity access for grassroots entrepreneurs, drive rural industrialisation, and modernise the agricultural value chain across Bangladesh.
Allocation Details and Financial Caps
The underlying financial framework relies on capital allocated from central reserves to protect small-scale enterprises from high market lending rates. The specific boundaries governing these refinancing operations are structured in the table below:
| Refinancing Allocation | Fund Capacity | Fixed Borrower Interest Rate | Primary Industrial Intent |
| Cluster Financing Scheme | BDT 3,000 crore | 7 per cent | Technological integration and economic scaling of regional MSME business clusters. |
| Agro Processing Fund | BDT 2,000 crore | 7 per cent | Investment in value-addition infrastructure and modern crop-processing equipment. |
Executing Signatories and Institutional Witnessing
The official signing ceremony was attended by a senior delegation representing the leadership of both organisations, highlighting the strategic importance of the credit line.
The deed of agreement was signed and formally exchanged by Nawshad Mustafa, Director of the SME & Special Programs Department (SMESPD) for Bangladesh Bank, and Md. Mostafizur Rahman, Deputy Managing Director for Citizens Bank PLC.
The exchange was witnessed by Bangladesh Bank Deputy Governor Nurun Nahar. Other prominent attendees included Husne Ara Shikha, Executive Director of Bangladesh Bank, and Bijoy Chandra Das, Head of the SMR & Marketing Division, along with several senior technical officers from the central bank’s regulatory wings.
Strategic Impact on the Domestic Economy
Under the terms of this compact, eligible entrepreneurs operating within defined industrial clusters and agro-processing businesses can access credit lines capped at a maximum interest rate of 7 per cent.
Financial analysts observe that combining cluster-based development with agricultural processing support addresses two key vulnerabilities in the country’s real economy: regional supply chain bottlenecks and seasonal agricultural waste. By using the commercial infrastructure of Citizens Bank to distribute these funds, the central bank aims to inject low-cost capital directly into productive sectors, helping small businesses maintain operational capacity and support employment during broader economic changes.