Bangladesh's central bank raises interest for safety retrofit facility

18 Apr '24

1 min read

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Bangladesh Bank issued a notice raising interest rate on a pre-finance facility under SREUP to 7 per cent from 5 per cent.
Interest rate for customers for whom loans have already been sanctioned will remain at 5 per cent per annum.
Interest rate for financial institutions which would disburse loan among customers has been refixed at 4.5 per cent per annum.

Bangladesh’s central bank, Bangladesh Bank, has recently announced an increase in the interest rate for its pre-finance facility within the Support Safety Retrofits and Environmental Upgrades Programme (SREUP), raising it from 5 per cent to 7 per cent.

Notably, customers with existing sanctioned loans will maintain their interest rate at 5 per cent per annum.

Additionally, the interest rate for financial institutions facilitating loan disbursement to customers has been adjusted to 4.5 per cent per annum, resulting in a 2.5 per cent margin.

The notice emphasised that loans will be allocated on a “first come, first served” basis, with all other instructions remaining unchanged.

It may be mentioned here Bangladesh Bank implemented this project specially designed to strengthen economic sustainability of the RMG sector even if through this project, efforts are directed towards implementing safety retrofits and environmental upgrades, crucial for the long-term viability and competitiveness of the industry.

Fibre2Fashion News Desk (DR)

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