Mutual Trust Bank PLC signed a master murabaha agreement with the International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB) Group, to strengthen trade finance support for small and medium enterprises (SMEs) and the private sector in Bangladesh.

Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank (MTB), and Nazeem Noordali, officer-in-charge, CEO of ITFC, signed the agreement in Dhaka recently, the bank said in a press release.

Noordali emphasised the strategic importance of the partnership, stating, "We are proud to partner with Mutual Trust Bank to provide trade financing facilities that will support SME growth and the import of essential commodities in Bangladesh."

"Private sector development is a cornerstone of the country's economic progress, and enabling SMEs to access trade finance is central to ITFC's strategy."

"This initiative will also help SMEs integrate into global value chains, fostering sustainable economic growth," he added.

Rahman expressed his enthusiasm for the agreement, saying, "The partnership with ITFC under this trade finance facility agreement is significant, especially given the current economic challenges faced by Bangladesh."

"This collaboration will enhance MTB's reputation among correspondent banks globally, highlighting its resilience, commitment to best practices, and dedication to sustainable growth," he added.

The agreement will enable ITFC to provide trade financing facilities against letters of credit (LCs) issued by MTB, enhancing the bank's capacity to support cross-border trade and contribute to the growth of SMEs.

This collaboration underscores both institutions' commitment to fostering economic development and private sector growth in Bangladesh.

The agreement reflects the shared vision of ITFC and MTB to drive economic growth by supporting SMEs and the private sector.

By facilitating access to trade finance, the partnership aims to empower businesses, create employment opportunities, and contribute to the sustainable development of Bangladesh.