Bangladesh Bank (BB) will provide loan to Ready Made Garment (RMG) sector under its “Urban Building Safety Project” for ensuring structural, fire and electrical safety in RMG factories. BB today signed separate agreements with 25 banks and 10 financial institutions to facilitate long-term financing for renovation works, re-construction, re-placement and fire safety in the RMG industries. The central bank has taken up a Taka 268 crore (4240 million Japanese Yen)project with financial support of Japan International Cooperation Agency (JICA). “Work place safety is not only a basic criteria, I should say it is free basic criteria of improving the RMG sector in the country,” said Bangladesh Bank Governor Fazle Kabir as the chief guest at the participating agreement signing ceremony at BB’s headquarter in the city. JICA Chief Representative to Bangladesh Takatoshi Nishikata and BB Deputy Governor SK Sur Chowdhury were present as special guests. BB Executive Director M Abdur Rahim presided over the signing ceremony. Fazle Kabir remembered the huge contribution of Japan for developing the country since the Liberation War saying Japan is the single largest bilateral development partner of the country. He said Bangladesh is moving forward to make it as developed one through setting up targets- vision 2021 and vision 2041. RMG sector will play a vital role to make the targets fruitful and also achieve the United Nation adopted Sustainable Development Goals by 2030, he added. Bangladesh has set a target to export RMG product US$50 billion by 2021, he said adding that the country would have to ensure safety in the RMG industries to achieve the targets. Under the Urban Building Safety Project for long-term financing, the banks can lend money for ventures in the RMG sectors for up to 15 years with three years grace period. The banks will have to pay interest rate two per cent to the central bank.The interest rate will be set considering the respective banks’ Capital, Assets quality, Management, Earning, Liquidity, and Sensitivity (CAMELS) rating. The banks will impose maximum six per cent interest rate. Among others, managing directors and chief executive officers of different banks and financial institutions, senior officials of Bangladesh Bank and different schedule banks and representatives from Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Bangladesh Garment Manufacturers and Exporters Association (BGMEA) were present on the occasion.
