Home / Knowledge / News / Apparel/Garments / €50-mn loan fund at Bangladesh Bank for RMG sector

€50-mn loan fund at Bangladesh Bank for RMG sector

Apr '19
€50-mn loan fund at Bangladesh Bank for RMG sector
Bangladesh, with support from France’s Agence Francaise de Developpement (AFD), has formed a €50-million loan fund in Bangladesh Bank to support safety remediation and environmental and social upgradation of readymade garment (RMG) factories. The programme is called Support Safety Retrofits and Environmental Upgrades in the Bangladeshi RMG Sector Project (SREUP).

The programme will receive technical assistance worth €14.29 million from the European Union, German state-owned development bank Kreditanstalt fur Wiederaufbau (KfW), German development agency Gesellschaft fur Internationale Zusammenarbeit (GIZ) and Bangladesh Bank.

Participating financial institutions would be provided with pre-finance for disbursing the credit to eligible RMG factories under the loan fund, according to a Bangladesh Bank circular.

Eligible RMG factories would get a loan amount up to €1 million with a maximum 7 per cent interest rate and the loan amount may be extended up to €3 million for major environmental upgradation, Bangla media reported citing the circular.

The maturity of the loan would be usually 3 to 5 years but in case of major environmental up-gradation or any other duly justified and documented case, it might be extended up to seven years.

The circular also said that eligible RMG firms will have to apply for loans to the financial institutions for their sub-projects’ investments based on corrective action plans commitments to the EU retailers platform Accord, North American buyers group Alliance and National Tripartite Plan of Action. (DS)

Fibre2Fashion News Desk – India

Must ReadView All

Pic: Shutterstock

Textiles | On 22nd Oct 2021

China's coal output rises to meet energy shortfalls amid govt measures

China's coal supply has showed signs of picking up with daily...

Pic: Shutterstock

Textiles | On 22nd Oct 2021

Indonesia, China begin feasibility study on coal-to-methanol unit

Indonesia and China recently signed an MoU to conduct a feasibility...

Pic: Shutterstock/TY Lim

Fashion | On 22nd Oct 2021

Balenciaga ranked hottest brand in The Lyst Index Q3 2021

Paris-based luxury fashion house Balenciaga was ranked the hottest...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Instagram & fashion will go a long way together

Textile Industry, Head honchos

Textile Industry
Head honchos

Liquidity is a primary issue in Indian context

Textile Industry, Head honchos

Textile Industry
Head honchos

Quality & affordability to affect market acceptability of new fibres

Susanna Koelblin,

Susanna Koelblin

Founded in 1920, Eastman is a global specialty materials company that...

Dhruv Toshniwal & Udit Toshniwal,

Dhruv Toshniwal & Udit Toshniwal

Launched a year ago, Fashions Pvt Limited conceptualises and sees D2C...

Shambhu Nath Jha,

Shambhu Nath Jha

Leading research and consulting firm Fact.MR recently launched a report on ...

Robert Brookins, Alexium International

Robert Brookins
Alexium International

Alexium International is a specialty chemical development company...

Brad Holschuh, Wearable Technology Lab, University of Minnesota

Brad Holschuh
Wearable Technology Lab, University of Minnesota

A new study led by researchers at the University of Minnesota's Design of...

Daniel Odermatt, Ventile

Daniel Odermatt

Ventile is a registered trademark used to brand a special high-quality...

Sarah Denise Cordery, Sarah Denise Studio

Sarah Denise Cordery
Sarah Denise Studio

Manchester, England-based Sarah Denise Studio provides relevant fashion...

Gaurang Shah, Label Gaurang Shah

Gaurang Shah
Label Gaurang Shah

Hyderabad based designer <b>Gaurang Shah</b>, has been traversing the...

Manish Malhotra, Label Manish Malhotra

Manish Malhotra
Label Manish Malhotra

A multitalented designer and founder of an eponymous label, Manish...

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


Leave your Comments

October 2021

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

Advanced Search