The green fund in foreign currency of the Bangladesh Bank for export based textile and leather goods is a stimulator to boost the green industry, exporters said praising the move of the central bank. The central bank’s foreign exchange policy department has arranged a $200 million fund under the title ‘Green Transformation Fund’ for export oriented textile and textile products and leather manufacturing industries to accelerate sustainable growth in export oriented textile and leather to transformation of green economy in the country. Bangladesh Garment Manufacturers and Exporters Association (BGMEA) former president Atiqul Islam said: “We welcome the government’s initiative of managing foreign currency funds for green industrialisation.” He said it should it should come into reality and the process should be easier and of less complexities. The former BGMEA leader said the proposed process of getting money from the authorized dealers should come under fine tuning aiming to make the process easier. As the central bank’s foreign currency department only the eligible borrowers who will keep their factories green will get the loans against import of green factory related capital machinery. For availing the export based textiles and leather industries need to maintain their factories green that is environment friendly as per the following criteria of water use efficiency in wet processing, water conservation and management, waste management, resource efficiency and recycling, renewable energy, energy efficiency, heat and temperature management, air ventilation and circulation efficiency, work environment improvement initiatives and other fields as identified may be included time to time. The fund would be managed by the BB’s Forex Reserve and Treasury Management Department (FRTMD) and it would be approved by the central bank’s Sustainable Finance. The tenor of loan will be from 5to 10 years with 1year grace period. Interest accrued for the grace period will be repaid in equal quarterly repayment without compounding. Interest shall be charged to authorized dealers against the financing @ six month USD LIBOR (rating benchmark/ methodology) plus 2.25 per cent. Bangladesh Leather Goods and Footwear Manufacturers and Exporters Association (BLFFEA) former president Tipu Sultan said, “We are yet to be encouraged as we think it would cover a less in the green leather industrial zone.” He said the area that the green financing cover to leather industry is using solar panels, air ventilation, heat management and some other small area which is already being maintained by the industrialists. He said the main regarding green compliance of a leather industry is effluent treatment plant but this one would set up centrally in bthe4 new leather industrial park.
