Embassy of Sweden, Bangladesh Bank, and UNCDF sign Memorandum of Understanding to launch Swedish Credit Guarantee in Bangladesh
03 June 2025
Dhaka, Bangladesh
Left to right: Mr. Md. Rokanuzzaman, Executive Director, Bangladesh Bank; Ms. Maria Stridsman, Counsellor, Deputy Head of Mission and Head of Cooperation; Ms. Nurun Nahar, Deputy Governor, Bangladesh Bank; Mr. Md. Shabbirul Alam Chowdhury, Director, Credit Guarantee Department; Sadat Mainuddin, Country Lead, UNCDF, Bangladesh
Today, the Embassy of Sweden in Dhaka, the Credit Guarantee Department of Bangladesh Bank, and the UN Capital Development Fund (UNCDF) signed a Memorandum of Understanding (MoU) to launch the Swedish Credit Guarantee in Bangladesh.
The signing ceremony was attended by Nurun Nahar, Deputy Governor of Bangladesh Bank, who signed on behalf of the central bank, Maria Stridsman, Deputy Head of Mission and Head of Development Cooperation at the Embassy of Sweden in Dhaka, and Sadat Mainuddin, Country Project Manager of UNCDF Bangladesh, along with other representatives from the three institutions.
The Swedish Credit Guarantee is a sovereign-backed, AAA-rated risk-sharing instrument that shares risk with financial institutions to unlock new capital. In Bangladesh, the guarantee will support key sectors such as the Ready-Made Garment (RMG) industry, women-led enterprises, and cottage, micro, small and medium enterprises (CMSMEs). By creating opportunities for borrowers often excluded from formal finance, the initiative aims to drive inclusive and sustainable growth.
In addition to advancing entrepreneurship and women’s economic empowerment, by mobilizing private sector lending for environmentally sustainable enterprises, the Swedish Credit Guarantee will contribute to Bangladesh’s resilience to climate change and support greener economic pathways.
The MoU focusses on technical assistance for the Credit Guarantee Department of Bangladesh Bank. Support will focus on policy gap assessments, upgrading guarantee regulations, digitizing guarantee processes, and capacity building for lenders and borrowers. These efforts will enhance the efficiency and effectiveness of credit guarantee schemes, ensuring that more businesses benefit from financial inclusion.
The Swedish Credit Guarantee will be piloted with one private financial institution in 2025, with the ambition to expand to up to three more institutions by 2030.
“Sweden is proud to introduce our guarantee instrument to Bangladesh in partnership with Bangladesh Bank and UNCDF,” said Head of Development Cooperation and Deputy Head of Mission of the Swedish Embassy in Dhaka, Maria Stridsman. "This initiative reflects our commitment to inclusive and sustainable development, with a particular focus on women entrepreneurs and green growth.”
“This partnership brings a new era in unlocking the required capital for women entrepreneurs, small businesses, tier 2 & 3 RMGs, and green and climate resilient businesses in Bangladesh,” said Maria Perdomo, Regional Investment Team Lead for Asia and the Pacific Region, UNCDF. “By combining Sweden’s innovative credit guarantee with UNCDF’s technical expertise and Bangladesh Bank’s leadership, we are building an ecosystem that mobilizes sustainable finance, strengthens institutional capacity, and fosters inclusive economic growth. This collaboration will not only expand access to credit for underserved segments, but also drive forward Bangladesh’s ambitions for social, environmental, and climate resilience by supporting market-driven solutions and empowering local financial institutions to serve those most in need.”
This partnership underscores Sweden’s commitment to sustainable development, Bangladesh Bank’s leadership in promoting access to finance, and UNCDF’s mandate to make finance work for the poor. Together, the three parties are working towards a more inclusive, sustainable, and resilient economy for Bangladesh.
