• Linkdin

Bangladesh Bank cuts interest rate on loans to RMG sector under SREUP

27 Sep '22
1 min read
Pic: Shutterstock
Pic: Shutterstock

The Bangladesh Bank recently cut the interest rate on loans under a programme started in 2019 that offers funds to readymade garment (RMG) units to reinforce their safety system and improve environmental standards. The initial maximum annual interest rate of 7 per cent has now been reduced to 5 per cent, 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’ (SREUP). 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 per cent annually. Investment grants will be sanctioned on a ‘first come, first served’ basis, according to Bangladeshi media reports. 

Fibre2Fashion News Desk (DS)

Leave your Comments

Esteemed Clients

Woolmark Services India Pvt. Ltd.
Weitmann & Konrad GmbH & Co. KG
VNU Exhibitions Asia
USTER
UBM China (Shanghai)
Tuyap Tum Fuarcilik Yapim A.S.
TÜYAP IHTISAS FUARLARI A.S.
Tradewind International Servicing
Thermore (Far East) Ltd.
The LYCRA Company Singapore  Pte. Ltd
Thai Trade Center
Thai Acrylic Fibre Company Limited
X
Advanced Search