Dhaka: The United Kingdom Department for International Development on Sunday launched a Tk 26.68 billion ‘Business Finance for Poor in Bangladesh (BFP-B)’ project to help banks and non-bank financial institutions (NBFIs) to easily reach the micro and small enterprises in rural areas.

The credit fund will be allocated to banks and NBFIs as grants to promote new business lending to poor rural entrepreneurs.

Formally launching the project at a function at Westin Hotel in the capital, Bangladesh Bank Governor Atiur Rahman said the BFP-B will play a key role in nourishing the micro and small enterprises to enhance their productivity and contribute to the economy to create a comprehensive growth base.

‘The BFP-B programme will help financial inclusion expand substantially in Bangladesh,’ he told the function, attended by officials of commercial banks, NBFIs and NGOs.

The central bank boss hoped the project will also help frame a policy and regulatory environment towards development of micro, small and medium enterprises (MSME).

The function was also addressed, among others, by Banking Division secretary M Aslam Alam, Bangladesh Bank deputy governor SK Sur Chowdhury, DFID Bangladesh country representative Sarah Cooke and Nathan Associates team leader David Munro.

Appreciating the British government’s initiative to support the financial inclusiveness for the poor entrepreneurs, Atiur said Bangladesh has already secured second position in financial inclusion in South Asian countries.

The Bangladesh Bank governor thanked the participating institutions for their driving thrust for mainstreaming the poor and the women in the financial inclusion initiatives.

Referring to his winning of ‘Central Banker of the Year, Asia Pacific-2015’ award from the Financial Times-owned magazine The Banker, he said this is in recognition of the collective efforts to promote financial inclusion and socially responsible financing for sustainable growth.