ADB signs a deal with EBL for a $20m loan in Dhaka on February 12, 2018. Photo: EBL
Dhaka, Bangladesh (BBN)- The Asian Development Bank (ADB) signed an agreement with Eastern Bank Ltd (EBL) on Monday for a $20 million loan to support the development of Bangladesh’s textile and garment sectors.
The agreement was signed by Christine Engstrom, Director for ADB’s Private Sector Financial Institutions Division, and Ali Reza Iftekhar, Managing Director and CEO of EBL, at a ceremony in the capital Dhaka.
Top officials from both institutions were also in attendance including Manmohan Parkash, ADB Country Director for Bangladesh, and Ali Reza Iftekhar Hassan O. Rashid, EBL’s additional MD.
The agreement was signed by Christine Engstrom, Director for ADB’s Private Sector Financial Institutions Division, and Ali Reza Iftekhar, Managing Director and CEO of EBL, at a ceremony in Dhaka. Top officials from both institutions were also in attendance including Manmohan Parkash, ADB Country Director for Bangladesh, and Ali Reza Iftekhar Hassan O. Rashid, EBL’s Additional Managing Director.
“The textile and garment sectors are essential parts 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 development of the textile and garment sectors 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 sectors.
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, Mr. Iftekhar reiterated the decade long relationship of EBL with ADB as development partners and conveyed his gratitude for all the support that ADB is rendering for the development of Bangladesh’s financial sector.
He also assured that EBL will widen its support for the growth and development of Bangladesh’s textile and garment sectors.
Eastern Bank, established in 1992, is a leading private commercial bank in Bangladesh. It is also the first bank in Bangladesh rated by international rating agency, Moody’s.
BBN/SSR/AD