In December 2017, OeEB signed a long-term credit line of USD 15 million to The City Bank Limited in order to improve access to finance for small and medium-sized enterprises (SME) as well as for businesses in the textile and clothing sector in Bangladesh.
|Project name||City Bank Limited|
|Region||Southern and Eastern Asia|
|Sector||Financial sector / Microfinance / SME|
|OeEB project volume||USD 15 million|
|Projekt partner(s)||The City Bank Limited|
Despite high economic growth in recent years, Bangladesh is still one of the poorest countries of the world and listed as a Least Developed Country by the OECD. SME make up the majority of Bangladesh's private sector and therefore play a significant role in the country's economic development. However, their ability to invest and grow is hampered by limited access to finance.
OeEB’s credit line contributes to closing this gap by helping City Bank Limited expand its SME business. Part of OeEB’s funds can also be used for providing loans to businesses in the textile and clothing sector – Bangladesh’s most important export industry – if they are committed to adhering to the Bangladesh Accord on Fire and Building Safety („ACCORD“) as well as the Alliance for Bangladesh Worker Safety („Alliance“) Initiative. This shall help improve and increase the sector’s safety standards.
By improving access to finance for local SME, OeEB contributes to strengthening Bangladesh’s private sector and to securing and creating jobs.