The Asian Development Bank (ADB) on Monday signed an agreement with Eastern Bank Ltd (EBL) for US$20 million loan to support the local textile and garment sectors.The fund is expected to fill up the financing gap prevailing in the country’s two most important sectors contributing immesely to the national economy.The loan will be used to finance socially and environmentally sustainable projects in Bangladesh’s textile and garment sectors.The agreement was signed by ADB’s director for Private Sector Financial Institutions Division Christine Engstrom, and Managing Director and CEO of EBL Ali Reza Iftekhar at a function in Dhaka.Top officials from both institutions were present at the event, including ADB Country Director Manmohan Parkash EBL’s additional managing director Hassan O. Rashid. “The textile and garment sectors are essential parts of the country’s economy, raising incomes for large numbers of workers, particularly the women workers,” said Engstrom.“We are confident that our partnership with Eastern Bank, a trusted financial institution in Bangladesh, will contribute to the development of the textile and garment sectors in the country.”Bangladesh is currently the second largest exporter of textiles and garments, accounting for about 15 percent of the country’s gross domestic product and employing over 4 million workers, 85 percent of whom are women.However, making the industry a safe place to work if it has become essential to maintain its position as a main driver of economic growth.The assistance will finance the construction or expansion of textile and garment factories that meet the high structural, fire, and electrical safety standards required.This, in turn, will enhance the health and safety standards of the sector.It will also help develop Bangladesh’s local financial sector through Eastern Bank’s expanded lending portfolio.At the event, Iftekhar reiterated the decade long relationship of EBL with ADB as development partners and conveyed his gratitude for all the support that ADB is rendering for the development of Bangladesh’s financial sector.He also assured that EBL will widen its support for the growth and development of Bangladesh’s textile and garment sectors.Eastern Bank, established in 1992, is a leading private commercial bank in Bangladesh. It is also the first bank in Bangladesh rated by international rating agency, Moody’s.
