Dhaka, Bangladesh (BBN) – The central bank of Bangladesh has revised interest rate policy on loans from the refinance scheme aiming to attract more borrowers for the low-cost refinancing facility.
Under the revised policy, the banks and non-banking financial institutions (NBFIs) have been allowed to charge interest at a range between 9.0 per cent and 8.0 per cent instead of highest rate of 9.0 per cent earlier.
The Bangladesh Bank (BB), the country’s central bank, issued a circular in this connection on Thursday, asking the chief executive officers and managing directors of the commercial banks to follow the instructions for refinancing the green products.
Talking to BBN in Dhaka, a BB senior official said the interest rates will be fixed considering the tenure of refinance. “It will help encourage the interested borrowers to avail of such refinancing facility from the banks and NBFIs.”
On the other hand, the central bank has included one more product — Green Building Featuring — in its list of products eligible for getting refinancing facilities under the green initiatives.
Now the number of green products stood at 51after including the new one. The products are eligible for getting loans from the refinance scheme of the central bank.
The BB earlier launched a refinancing fund worth BDT 2.0 billion to facilitate Eco friendly business activities across the country.
The banks and NBFIs have already been advised to encourage and finance in environmental infrastructure such as renewable energy project, clean water supply project, wastewater treatment plant, solid and hazardous waste disposal plant, bio-gas plant and bio-fertilizer plant.