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By
Fibre2Fashion
Published
Sep 27, 2022
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Bangladesh Bank cuts interest rate on loans to RMG sector under SREUP

By
Fibre2Fashion
Published
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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