Home / Knowledge / News / Apparel/Garments / Bangla garment factories receive funds to improve safety
Bangla garment factories receive funds to improve safety
Oct '13
The Central Bank of Bangladesh has created a fund of Tk 100 crore with the assistance of Japan International Cooperation Agency (JICA) to improve safety standards in the apparel sector.

Factory owners will receive the loan from commercial banks at a maximum of 10 percent interest for rebuilding and relocating of factories and purchase of equipment.

The commercial banks should keep the interest rate low, Atiur Rahman, governor of Bangladesh Bank, said at a programme at the Westin Hotel in Dhaka.

JICA, Bangladesh Bank, Bangladesh Garment Manufacturers and Exporters Association, Bangladesh Knitwear Manufacturers and Exporters Association and the housing and public works ministry signed a deal.

The borrowers will have to repay the loan in 15 years with a grace period of two years, Bangladesh Bank said in a statement.

JICA agreed to give the fund following the Rana Plaza tragedy, under its ongoing project worth Tk 400 crore for the development of small and medium enterprises, launched in May 2011.

A technical team of JICA and engineers of the housing and public ministry will inspect the factories of loan seekers and estimate the costs, before the banks sanction the funds, said Anisuzzaman Chowdhury, senior programme officer of JICA.

The highest limit of the individual loan is Tk 10 crore, according to the banking regulator.

Bangladesh should adopt Japanese retrofitting technology to ensure worker safety, said Khondaker Showkat Hossain, housing and public works secretary.

Retrofitting is the process of modifying something after it has been manufactured. For buildings, it means making changes to the systems inside the building or even the structure itself at some point after its initial construction and occupation.

Japan wants to be more involved with Bangladesh, said Shiro Sadoshima, Japanese ambassador. “We want cooperation from the public and private sectors.”

Bangladesh is seriously working to address the workplace safety and rights of workers in the apparel industry, said Atiqul Islam, president of BGMEA.

Bangladesh should work seriously to maintain its sustainable economic growth, said Hiroyuki Tomita, JICA Bangladesh Office’s senior representative.

The public and private sector should work together to achieve the highest economic growth, Tomita said.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA)

Must ReadView All

Union textiles minister Smriti Irani addressing at the Texprocil Annual Export Awards. Courtesy: PIB

Textiles | On 22nd Oct 2016

Govt to extend special package to home textiles segment

The Central government is likely to extend the recently approved Rs...

Reebok Liquid Speed Grey. Courtesy: Business Wire

Apparel/Garments | On 22nd Oct 2016

Reebok’s Liquid Factory brings sneaker creation to US

Reebok, a pioneer in the sporting goods industry, has brought sneaker ...

Opening ceremony of the new UL Vietnam laboratory. Courtesy: Business Wire

Textiles | On 22nd Oct 2016

UL opens first testing laboratory in Vietnam

UL, a global safety science organisation, has officially opened its...

Interviews View All

Rahuul Jashnani

‘Online economy has changed the whole dynamics of buying habits.’

Nuno Venda

‘There has been an increase in demand for water based inks, rather than...

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Sonam & Paras Modi

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search