Dhaka, Bangladesh (BBN)- Japan International Cooperation Agency (JICA) will provide BDT 1.0bn in loan for improving the working environment in the country’s apparel sector.
A memorandum of understanding (MoU) to this effect was signed between JICA and Bangladesh Bank (BB), Public Works Department, Bangladesh Garments Manufacturers and Exporters Association, and Bangladesh Knitwear Manufacturers and Exporters Association at a city hotel on Thursday.
The aim of the fund is to provide financial support to the ready-made garment (RMG) enterprises for conducting safety assessment of their buildings under the supervision of JICA experts and engineers of the public works department under the Housing and Public Works Ministry.
Under the project, an entrepreneur will be given maximum BDT 1.0 million as soft loan with maximum interest rate 10 percent to develop infrastructure for their garment factories. The financing will be long term up to 15 years including a two years grace period.
BB Governor Atiur Rahman, Japanese Ambassador to Bangladesh Shiro Sadoshima, Chief Representative of JICA Bangladesh office Takao Tada, Housing and Public Works secretary Khondaker Showkat Hossain, BGMEA President Atiqul Islam and first vice-president of BKMEA Md Hatem were present at the MoU signing ceremony.
The central bank of Bangladesh has taken the latest initiative against the backdrop of Rana Plaza collapse in Savar on April 24 last, where more than 1,100 people died and hundreds were severely injured.
BBN/SSR/AD-03Oct13-9:38 pm (BST)