The Asian Development Bank (ADB) Monday signed an agreement with Eastern Bank Ltd (EBL) for a $20 million loan to help improve the standards and quality in Bangladesh's textile and garment sector and help fill the equity gap in the local financial market.
The agreement was signed by Ali Reza Iftekhar, Managing Director & CEO of EBL and Christine Engstrom, Director of Private Sector Financial Institutions Division at ADB at a ceremony held in Dhaka. Manmohan Parkash, Country Director-Bangladesh, ADB; Hassan O. Rashid, Additional Managing Director, EBL along with others senior officials from both the organisations were present on the occasion.
"The textile and garment sector is an essential part of the Bangladesh economy, raising incomes for large numbers of workers, particularly women," said Ms. Engstrom. "We are confident that our partnership with Eastern Bank, a trusted financial institution in Bangladesh, will contribute to the improvement of the textile and garment sector in the country."
Bangladesh is currently the second largest exporter of textiles and garments, accounting for about 15 per cent of the country's gross domestic product and employing over 4.0 million workers, 85 per cent of whom are women. However, making the industry a safe place to work in is essential in order for it to maintain its position as a main driver of economic growth.
The loan will be used to finance socially and environmentally sustainable projects in Bangladesh's textile and garment sector. Specifically, the assistance will finance the construction or expansion of textile and garment factories that meet the high structural, fire, and electrical safety standards required. This, in turn, will enhance health and safety standards of the sector. It will also help develop Bangladesh's local financial sector through Eastern Bank's expanded lending portfolio.
At the event, Ali Reza Iftekhar reiterated the decade long relationship of EBL with ADB as a partner Development Financial Institution and conveyed his gratitude for all the supports that ADB is rendering for the development of financial sector of Bangladesh. He also assured that EBL will widen its support for the growth and development of Bangladesh's textile and garment sectors.
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