The International Islamic Trade Finance Corporation, a member of the Islamic Development Bank Group, has approved a Murabaha Financing Facility in favour of Eastern Bank Limited in Bangladesh to support the bank’s private sector business, particularly Small and Medium-scale Enterprises importing raw materials.
According to a statement by IsDB on Thursday, EBL is the latest partner institution to work with ITFC in expanding its financing outreach to the private sector through local banks in Bangladesh.
The financing comes at a critical time for SMEs in Bangladesh and other Organisation of Islamic Cooperation member countries facing the social and economic effect of the Coronavirus Disease, which has disrupted global trade, supply chains and stretched financial resources.
ITFC’s Chief Executive Officer, Hani Sonbol, said, “We are pleased to announce the partnership with EBL in supporting SME growth in Bangladesh. Such collaborative approach is meant to facilitate SME access to financing, and that is key in the country’s economic growth and ability to expand participation in global value chains. ITFC continues to extend support in trade development and ultimately leading to socio-economic development for our member countries.”
The Managing Director and Chief Executive Officer of EBL, Ali Reza, added, “This Murabaha financing facility will enable EBL to provide better value to its clients through the extensive links and support of ITFC and IsDB. This financing facility is a manifestation that EBL is always looking to offer innovative trade products and tailored financing solutions for our clients. This important relationship with ITFC will ensure growth of EBL’s corporate and SME clients and will contribute further to trade business of the country.”