Citizens Bank PLC has formally signed a participation agreement with Bangladesh Bank, the nation’s central monetary authority, to implement two major financial development initiatives aimed at boosting the domestic economy.
Under the terms of the newly executed deed, Citizens Bank will act as an official intermediary to disburse credit from the BDT 3,000 Crore Cluster Financing Scheme and the BDT 2,000 Crore Agro Processing Fund. These initiatives are designed to accelerate the growth, productivity, and operational capacity of Micro, Small, and Medium Enterprises (MSMEs) across the country, particularly within specialized industrial clusters and agricultural value chains.
Structural Architecture of the Refinancing Framework
The agreement allows Citizens Bank to draw capital from central refinancing pools established to insulate small-scale entrepreneurs from standard commercial borrowing rates. The underlying financial parameters and allocations governing these operations are structured in the table below:
| Refinancing Facility | Aggregate Scheme Fund Size | Mandated Borrower Interest Rate | Primary Economic Target |
| Cluster Financing Scheme | BDT 3,000 crore | 7 per cent | Development and technology scaling of specialized geographic MSME business clusters. |
| Agro Processing Fund | BDT 2,000 crore | 7 per cent | Modernisation of agricultural processing units and value-addition infrastructure. |
Execution of Deed and Administrative Delegations
The formal agreement-signing ceremony was hosted recently at the Bangladesh Bank headquarters in Dhaka. The transaction was witnessed by senior executive leadership from both institutions, underscoring the strategic priority assigned to grassroots financial inclusion.
The deed of agreement was signed and formally exchanged by Nawshad Mustafa, Director of the SME & Special Programs Department (SMESPD) on behalf of Bangladesh Bank, and Md. Mostafizur Rahman, Deputy Managing Director representing Citizens Bank PLC.
The signing took place in the presence of Bangladesh Bank Deputy Governor Nurun Nahar. Other notable officials attending the ceremony 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 departments.
Strategic and Macroeconomic Implications
Through this operational partnership, eligible small-scale entrepreneurs and agro-processors can secure debt capital capped at an interest rate of 7 per cent.
Financial analysts note that by targeting specialized industrial clusters and the agro-processing sector, the central bank aims to drive employment generation, reduce post-harvest agricultural losses, and enhance domestic supply chain resilience. Utilizing a private commercial entity like Citizens Bank ensures that public liquidity is efficiently directed into the real economy, providing critical financial buffers for small businesses during periods of broader macroeconomic adjustment.