Dhaka, Bangladesh (BBN) – The German Investment and Development Company (DEG) has recently extended a long term loan of $20 million to Eastern Bank Limited (EBL) through its offshore banking unit.

The liquidity created out of this US dollar loan will be utilized to finance small and medium enterprises (SMEs) and industries in export processing zones, the EBL said in a statement on Tuesday.

Philipp Kreutz, member of the management board of DEG; Herbert Baumgartner, director of DEG representative office in Bangkok; and Ali Reza Ifthekhar, managing director of EBL, signed an agreement in this regard at a ceremony at the Westin Dhaka on Monday.

Supporting SME growth in the developing countries is one of DEG’s strategic goals, and this facility to EBL will be a milestone to achieve the goal in Bangladesh, said Kreutz.

DEG finances investments of private companies in developing and transition countries.

BBN/SSR/AD-17Jan12-11:59 pm (BST)