BB sets up Tk 50b refinance scheme
Bangladesh Bank (BB) on Wednesday announced a new refinancing scheme worth Tk50 billion to promote green industry in the export and productive sectors.
Under the scheme, the green entrepreneurs will be entitled to get loans at a 5.0 per cent interest, according to a circular.
The banks will have access to the fund at a rate of 1.0 per cent and will be allowed to keep a margin of 4.0 per cent.
The duration of the revolving fund, financed from the BB, will be 5-10 years. The green refinancing will be provided in local currency.
Bangladesh Bank has another similar scheme, Green Transformation Fund, worth US$200 million and 200 million euros, to procure capital machinery and others meant for green industrialisation.
Disbursement from these funds has now become slow due to shortage of foreign currencies.
The loans should be given to procuring capital machinery and other equipment required for green industrialisation in the country.
The sectors where the fund can be used are efficient use of water and wet processing, water conservation and management, waste management, resource efficiency and recycling, energy efficiency, renewable energy, heat, and temperature management, air ventilation and circulation efficiency, work environment improvement initiatives and other areas as indicated by the Bangladesh Bank from time to time.