Fibre2Fashion
Sep 27, 2022
Bangladesh Bank cuts interest rate on loans to RMG sector under SREUP
Fibre2Fashion
Sep 27, 2022
The Bangladesh Bank recently cut the interest rate on loans under a programme started in 2019 that offers funds to readymade garment units to reinforce their safety system and improve environmental standards. The initial maximum annual interest rate of 7% has now been reduced to 5%, the central bank said in a notice.

The revised interest rate will be applicable to all new and existing sub-loans under the programme.
The government constituted the fund with the Bangladesh Bank to support RMG factories through medium to long-term financing under the ‘Programme to Support Safety Retrofits and Environmental Upgrades in the Bangladeshi Ready-Made Garments Sector Project’. The project fund size is €50 million.
The interest rate to be paid by participating financial institutions to the Bangladesh Bank was fixed at 2.5% annually. Investment grants will be sanctioned on a ‘first come, first served’ basis, according to Bangladeshi media reports.
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