BB expands green refinance scheme

Bangladesh Bank (BB) has expanded its refinancing scheme for eco-friendly industries known as green projects, with including members of two major trade-associations.
The central bank in a circular on Sunday said the members of Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA) and Leather Goods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEA) will be eligible for getting loans from the refinancing scheme.
Currently, the green financing offers loan to 47 products covering nine sectors, a BSS report added.
BB said the members of BPGMEA and LFMEA would also get loans from the revolving fund for improving safety and security at their factories by installing fire extinguishers and water pumps at rooftops and constructing underground water reservoirs.
In August 2009, BB lunched the Tk2 billion green banking refinance scheme to promote renewable energy and environmental friendly projects to help increase the power supply and reduce industrial pollution.
The central bank also issued the policy guidelines for green banking to the scheduled banks in February 2011.
Following BB's instructions, 47 banks have so far developed their own green banking policy guidelines when many of them signed agreements with the central bank for disbursing loans under the scheme as Participating Financial Institution (PFI).