Two textile sub-sectors can now bank on low-cost funds

Entrepreneurs operating in the two textile sub-sectors will also now get funds from the central bank's green-banking refinance scheme.

A single-digit interest rate is offered under the scheme in accordance with the government policy to support renewable energy and environment-friendly activities.

The Bangladesh Bank issued Sunday a circular extending the refinance scheme to cover the two textile sub-sectors.    

Under the new provisions, the members of Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA) and Bangladesh Terry Towel and Linen Manufacturers and Exporters Association (BTTLMEA) will be eligible for low-cost funds from the banks and the non-banking financial institutions (NBFIs) at 9.0 per cent rate of interest.

The central bank, in its circular, asked the chief executive officers and managing directors of the commercial banks and the NBFIs to provide such refinancing facility to members of the two trade bodies.

"We've extended our green banking refinancing scheme in the wake of growing demand for renewable energy and environment-friendly activities in the country," a BB senior official told the FE.

He explained: the inclusion of the new areas came as part of BB efforts to expand renewable energy and environment-friendly technologies.

The central banker also said the members of the two trade bodies are now in for receiving such attractive refinancing to ensure safe working environment for their workers.   

The BB formed a Tk 2.0 billion revolving fund in 2009 for the banks and NBFIs to offer loans at low interest in solar energy, biogas and effluent-treatment sectors.

Reducing industrial pollution and increasing power supply are the cardinal aims.

Currently, 47 green products under nine categories are getting the low-cost funds under the refinancing scheme.

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