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

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)