Dhaka, Bangladesh (BBN) – The Bangladesh Bank (BB) has signed an agreement with 25 banks and 10 non-bank financial institutions (NBFI) for disbursing BDT 268 crore to Japan International Cooperation Agency (JICA) funds for remediating the readymade garment industry of the country.
Clients can avail loan from this fund to improve the safety measures at their production units, reports the fibre2fashion.
JICA will help the country’s garment sector adopt improved safety measures, said Fazle Kabir, governor of BB while addressing the deal signing ceremony held in Dhaka.
He added that it will help improve working conditions and play an important role in assisting the Bangladesh apparel industry to achieve its target of earning $50 billion in exports by 2021.
The loan can be availed by the clients at 6 per cent rate of interest and its repayment tenure will be either 10 or 15 years.
Owners of RMG production units will also get a grace period of up to three years for repaying the loan.
The maximum amount that a factory owner can get from the fund is BDT 35 crore.
Bangladesh and Japan had partnered for using the JICA fund to improve safety and working conditions at the former country’s RMG factories as part of the Urban Building Safety Project.