Credit flow to green projects on rise: BB

The green and eco-friendly projects have become one of the major focuses of country's banking sector, with increasing credit flow, according to Bangladesh Bank (BB), reports BSS.

The latest data of the BB's green banking and CSR department showed that the banks in 2014 disbursed Tk 450.53 billion (taka 45 thousand 53 crore) to finance various projects those have direct or indirect link to green initiatives.

Of the amount, 36.23 billion (taka 3 thousand 623 crore) were disbursed to finance absolute green projects when the rest Tk 414.29 billion (taka 41 thousand 429 crore) lended to finance the eco-friendly projects.

The central bank attributed the increased credit flow to the green and eco-friendly projects to its prudent policy support. "The BB made simple the policy guidelines for utilising the refinancing scheme for green and eco-friendly projects", BB's spokesperson and executive director M Mahfuzur Rahman told the BSS.

He said the central bank strongly suggested banks increase their lending to green and eco-friendly projects.

"We are also constantly monitoring the banks' credit flow to eco-friendly and green projects", the BB official said.

The BB earlier launched refinancing scheme of Tk 2.0 billion (200 crore) from its own source to finance green projects. Besides, the central bank in association with the Asian Development Bank (ADB) also introduced another refinancing scheme of Tk 4.0 billion (400 crore) for funding eco-friendly brick kilns.

The major green and eco-friendly projects include effluent treatment plant (ETP), renewable energy, solar power and waste management.