Bangladeshi apparel firm Standard Group has secured US$ 50 million low-cost loan from the Bangladesh Bank (BB) and other commercial banks in order to resume production at its fire-ravaged factory.
The decision was announced by BB Governor Atiur Rahman at a press briefing after a meeting with representatives of the Standard Group, five commercial banks and Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
Of the total amount, US$ 25 million would be provided from BB’s export development fund at a lower interest rate, and the remaining US$ 25 million loan would be provided to the apparel firm through three foreign commercial banks by converting local currency into foreign currency at low interest.
The apparel firm would also be provided a five-year loan rescheduling facility without down payment, with a one year grace period.
The three commercial banks that would be providing the US$ 25 million loan to Standard Group are Standard Chartered Bank, HSBC and Citibank NA.
According to the Standard Group, the firm had incurred a financial loss of Tk 12 billion (approx. US$ 154.26 million) due to the devastating fire on November 29, 2013, that gutted garment products and machinery of its two buildings at Konabari in the Gazipur industrial belt near the capital Dhaka.