The interest rate to be paid by participating financial institutions to the central bank is fixed at 2.5% annually
The Bangladesh Bank on Monday slashed the interest rate on loans under a program that provided funds to the readymade garment (RMG) sector to raise its safety system and upgrade environmental standards.
In 2019, the government formed the fund with the Bangladesh Bank to support the RMG factories through medium to long-term finance under the “Program to Support Safety Retrofits and Environmental Upgrades in the Bangladeshi RMG Sector Project (SREUP).”
The fund size of the project is €50 million.
When the financing facility was introduced three years ago, the interest rate was fixed at a maximum of 7%.
At the customer level, the interest rate has been re-fixed to a maximum of 5% per annum instead of the existing 7%, said the central bank in a notice.
The new interest rate will be applicable to all new and existing sub-loans under the program.
The interest rate to be paid by participating financial institutions to the central bank is fixed at 2.5% annually.
Investment grants will be sanctioned on a “first come, first served” basis, said the central bank.
