BB, IPDC ink deal to ensure funds for CMSMEs

IPDC Finance Limited has signed an agreement with Bangladesh Bank under the Credit Guarantee Scheme to ensure economic development in rural areas of the country.

The deal was signed in a brief ceremony recently, said a press release.

The Credit Guarantee Scheme will ease existing credit availing process for the CMSMEs in the country’s far-flung areas, ensuring economic development of those regions.

Md Oliul Islam, Joint Director, CGS Unit, Bangladesh Bank; Md. Nazrul Islam, Deputy General Manager, CGS Unit, Bangladesh bank; SM Mohsin Hossain, General Manager, CGS Unit, Bangladesh bank; Mominul Islam, Managing Director and CEO, IPDC Finance Limited, among others, attended the programme.

The event was also attended by Rizwan Dawood Shams, Additional Managing Director, IPDC Finance Limited; Mohammad Mahmudur Rahman Shawon, Head of SME, IPDC

Finance Limited; Bipul Deb, Executive, IPDC Finance Limited; S M Mahamudul Farid, Assistant Manager, IPDC Finance Limited.

A credit guarantee scheme provides third-party credit risk mitigation to lenders through the absorption of a portion of the lender’s losses on the loans made to small and medium enterprises in case of default, typically in return for a fee.

IPDC Finance Limited, previously known as Industrial Promotion and Development Company of Bangladesh Limited, is the first private sector financial institution of the country established in 1981 by a distinguished group of shareholders namely International Finance Corporation (IFC), USA, German Investment and Development Company (DEG), Germany, The Aga Khan Fund for Economic Development (AKFED), Switzerland, Commonwealth Development Corporation (CDC), UK and the Government of Bangladesh.