Green financing: $200m fresh BB fund soon

CHITTAGONG, Dec 02: The central bank is set to launch another fund worth US$200 million shortly for green financing in different productive sectors, including textiles and leather.
Bangladesh Bank (BB) Governor Dr Atiur Rahman disclosed the decision at the foundation-laying ceremony of Human Resources and Management Institute in the port city Wednesday.
"We're going to introduce the $200-million Green Fund with our own resources," he said.
A proposal in this connection will be placed at BB's next board-of-directs meeting, scheduled for December 11, for approval, according to the BB governor.
He also said the central bank is now working to increase investment in the productive sectors like agriculture and SME (small and medium enterprises) for ensuring sustainable development across the country.
As part of the moves, the central bank has already introduced a $300-million investment fund for helping the country attain maximum economic growth through accelerated productive activity.    
Dr. Rahman also said the funds would be used for boosting medium-and long-term investments, particularly in productive sectors.
The BB issued a circular along with 112-page operations manual on October 27 last to disburse the funds under the Financial Sector Support Project (FSSP) of the central bank.
Currently, the BB is also providing a short-term foreign-currency facility under the Export Development Fund (EDF) involving US$ 2.0 billion for the exporters.
The BB governor also said the central bank is now working to bring un-banked people into the banking network through boosting the ongoing financial inclusion campaign across the country.
"The second banking fair will be held in Chittagong," the central bank chief announced, without elaborating.
Talking to the FE, AFM Asaduzzaman, General Manger and Assistant spokesperson for the BB, said the next banking fair will be held in Chittagong in January 2016.
The central bank of Bangladesh organized the first Banking Fair Bangladesh -2014 at Bangla Academy in the capital on November 24-18 aiming to build a banking nation through raising public awareness about banking products and services, and expanding financial literacy programmes.
The Human Resources and Management Institute will be a human resources development centre for the BB, commercial banks and non-banking financial institutions (NBFIs).
"It will play role as a centre for leadership excellence for the country's financial sector," the BB governor noted.
It may also be used for the different corporate programmes of entire financial sector, government organizations and private corporate bodies, according to the BB officials.
"The centre will be operated as a non-profit organization," a BB official told the FE.     
Among others, Deputy Governor of BB Abu Hena Mohammed Razee Hassan, Executive Director Muhammad Mijanur Rahman Joddar, former Executive Director of the central bank M Mahfuzur Rahman and Chairman of Chittagong Development Authority (CDA) Abdus Salam also spoke on the occasion.
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