Bangladesh Bank sets rules for Green Transformation Fund

October 05, 2016 - Bangladesh

Bangladesh Bank (BB) has made it mandatory for Authorised Dealers (ADs) to sign participation agreements to get funds under the Green Transformation Fund (GTF) established by the bank earlier this year. The GTF aims to accelerate sustainable growth in export oriented textile and leather sectors conducive to transformation of green economy in the country.

ADs will have to submit a written application to the general manager of the BB’s sustainable finance department bank at its Dhaka head office in order to receive loans. A circular released by BB has urged ADs to immediately take the necessary initiatives for entering into the participation agreement under GTF.

BB established the GTF worth $200 million to provide low-cost loans to companies belonging to textile and leather industries to make their production process more eco-friendly. Under GTF, textile and apparel industries will get loans for waste management, water conservation and management, recycling, water efficiency in wet processing, energy efficiency, and renewable energy. (KD)