DHAKA, Feb 13, 2023 (BSS) - To support export and import-based businesses to 
cope with global uncertainties brought on by the COVID-19 pandemic, IFC is 
providing $50 million to Prime Bank Limited in Bangladesh. 

This IFC funding will support working capital, trade finance, and foreign 
exchange liquidity needs of export and import based entities borrowing 
through Prime Bank's Offshore Banking Unit.

The financing package is part of IFC's 'Fast Track COVID-19 Facility,' a 
package designed to support countries and private sectors to cope with the 
impacts of the pandemic under the Working Capital Solutions (WCS) program, 
said a press release.

This IFC engagement with Prime Bank will also be supported by the 
International Development Association's Private Sector Window Blended Finance 
Facility.

Commercial banks are the largest providers of working capital and foreign 
exchange trade finance support to manufacturing and infrastructure 
businesses, key drivers of Bangladesh's economy. 

Unexpected turbulence in the global markets because of the Russian invasion 
of Ukraine and the resulting war has restrained foreign exchange liquidity in 
the market. With this funding, Prime Bank is expected to extend loans to its 
export and import-based customers, helping keep businesses afloat, resume 
exports and preserve jobs.

"IFC's support reflect resilience of Bangladesh economy and confidence on 
Prime Bank. IFC has been a valuable partner of Prime Bank since 2014 and this 
relationship helps us to significantly expand our OBU business. We are really 
thankful to IFC for its continued support. This fresh funding of USD 50 
Million targeted for SME clients will help us to grow SME portfolio of the 
bank," said Managing Director & CEO of Prime Bank Hassan O. Rashid.

Prime Bank is one of the leading private-sector commercial banks in 
Bangladesh. It was awarded the "2021 Best Bank Partner for Equipment Trade in 
South Asia" by IFC under its Global Trade Finance Program (GTFP). 

This project is IFC's 4th WCS facility to Prime Bank, supporting a long-
standing partner bank's ability to provide critical financing services and 
promote the resilience of the trade finance market in Bangladesh. 

"It is clear the impacts of COVID-19 are still being felt by a number of 
businesses in Bangladesh's key industries, effectively constraining their 
operating ability," said Allen Forlemu, Regional Industry Director, Financial 
Institutions Group, IFC. 

"This funding package is designed specifically to help ensure businesses in 
Bangladesh can continue to trade and have access to working capital, helping 
them maintain operations and preserve jobs. Small and medium-sized 
businesses, which are the backbone of the country, and have been particularly 
impacted by the pandemic, are expected to benefit the most from this IFC 
funding." Added Allen.

IFC has provided a total of $310 million in working capital solutions to 
banks in Bangladesh and liquidity support to companies since the beginning of 
the COVID-19 crisis, including this new funding to Prime Bank.

Since 2010, IFC has invested over $3.6 billion to help private sector grow in 
Bangladesh, creating jobs for the country's people.