The International Finance Corporation (IFC) has extended a $50 million loan to Brac Bank to aid small and medium-sized enterprises (SMEs) in overcoming the long-lasting effects of the Covid-19 pandemic. This investment aims to safeguard jobs and enhance foreign exchange liquidity within Brac Bank, enabling the provision of working capital and trade finance support to the bank’s SME clients involved in import and export activities. Additionally, the loan serves as a positive market signal, attracting international investors to assist in addressing the foreign exchange financing requirements of local banks and SMEs.
The funding package is part of IFC’s $8 billion global Covid-19 fast-track financing facility, designed to assist companies during the ongoing public health crisis. Brac Bank, Bangladesh’s third-largest private bank and the sole SME-focused bank in the country, seeks to address the challenges faced by SME and corporate clients due to the disruptive impact of the pandemic and the limited availability of foreign exchange.
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