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Dhaka, Bangladesh (BBN)– The central bank of Bangladesh has introduced €200 million Green Transformation Fund (GTF) along with the existing US$200 million to set up environment friendly infrastructures.

“A decision has been taken to introduce €200 million along with the existing $200 million. Accordingly, participating Authorized Dealers (ADs) will now be in a position to draw loans in euro from GTF at the rate of Euro Interbank Offered Rate (EURIBOR) plus 1.0 per cent for the admissible purposes,” the Bangladesh Bank (BB), the country’s central bank, said in a circular on Wednesday.

In case of EURIBOR remaining in negative territory, the authorized dealer (AD) banks will be charged only at the rate of 1.0 per cent against their borrowing from the fund.

“As usual, ADs shall determine their mark-up above the borrowing cost within the specified range of 1.0 to 2.0 per cent,” it added.

The central bank also decided that financing on long term basis (5 to10 years) from GTF in Euro will be admissible to all manufacturing industrial enterprises for importing of environment friendly and energy efficient (including solar energy and renewable energy under power sector) or green capital machinery and accessories (including buyer’s credit).

This GTF in Euro is also to widen the scope to import (only buyer’s credit) industrial raw materials used in all manufacturing enterprises including both export oriented and deem exporters.