Japan has given a fund worth Tk 537 crore to Bangladesh Bank to finance Japanese companies operating in Bangladesh, Japan-Bangladesh joint ventures and local private companies having significant business ties with Japan.
The central bank will manage the fund given by Japan International Cooperation Agency while banks and non-bank financial institutions will get access to the fund to provide loans to the designated enterprises.
The BB singed participating financial institution (PFI) agreements separately with 24 banks and NBFIs at its headquarters in Dhaka on Wednesday.
Under the PFI agreements, 19 banks and five NBFIs will be able to get loans only at 3 per cent interest rate from the fund.
The banks and NBFIs will distribute loans to private companies at 7 per cent interest rate for highest 10 years.
A company as a single unit will get highest Tk 30 crore in loans. The amount of loans may be increased, if necessary, with the approval of the steering committee.
BB governor Fazle Kabir, deputy governor Abu Hena Mohd Razee Hassan, executive director Ahmed Jamal, JICA Bangladesh Office chief representative Takatoshi Nishitaka and Association of Bankers, Bangladesh board of governors chairman Syed Mahbubur Rahman were present, among others, on the signing ceremony.
JICA has given the loan under the component-1 of the foreign direct investment promotion project loan agreement.
Bangladesh and Japan signed the agreement in 2015 to improve private investment and increase FDI from Japan through establishing special economic zones and industrial parks as part of the overall economic development in Bangladesh.
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