Dhaka, Bangladesh (BBN) – The central bank has approved 10 private sector projects to take loan, amounting to US$ 109.2 million, from overseas sources, officials said.
The approval came at the 67th meeting of scrutiny committee held at the Bangladesh Bank (BB) head office in Dhaka with BB Governor Atiur Rahman in the chair.
Committee members, including representatives from the Prime Minister’s Office, the Ministry of Finance, Ministry of Commerce, Ministry of Industries, Board of Investment and officials of the committee secretariat were present at the meeting.
The loan includes US$ 25.1 million for Sylvan Agriculture Limited, US$ 20.0 million for Banga Builders Limited, US$ 15.0 million for Western Marin Shipyard Limited, US$ 15.0 million MI Cement Factory Limited, US$ 5.0 million for Universal Menswear Limited, US$ 4.0 million for DNV Clothing Limited and others for RR Imperial Electricals & Genesis Washing Limited.
The highest interest rate of the approved proposals is three-month Libor+4.50 percent per year. The effective interest rate will be within 4.94 percent per annum and the tenure of these loan proposals are at least 5 years.
LIBOR (London Interbank Offered Rate) is an interest rate at which banks can borrow funds, in marketable size, from other banks in the London interbank market. The Libor is fixed on a daily basis by the British Bankers’ Association.
“More foreign financing proposal is under processing and close consideration for the approval,” an official said, adding that such foreign financing will be helpful for keeping the exchange rate of US dollar stable against the local currency.
“It also helps ease the pressure on the country’s ‘balance of payment’ and create more job opportunities,” he noted.
BBN/SSR/AD-29Aug12-11:19 am (BST)
