BB opens GTF for all sectors

Staff Correspondent | Published: 00:00, Jun 27,2019

 
 

Bangladesh Bank on Wednesday opened up its Green Transformation Fund (GTF) for all manufacturing and export oriented entities irrespective of sector.
Earlier, the BB only allowed three sectors — textile, leather and jute — to access fund from the GTF to import capital machinery and accessories for implementing specified green or environment-friendly initiatives.
However, other conditions to get refinance fund from GTF would remain unchanged, a BB circular issued on the day said.
In January, 2016, BB introduced a refinance scheme namely GTF amounting to $ 200 million for the export oriented industries of the textile and leather sectors to set up environment friendly infrastructures.
In October, 2017, the facility of accessing fund from the GTF was extended to the Jute sector.
The refinance fund is being provided for water use efficiency in wet processing, water conservation and management, waste management, resource efficiency and recycling, renewable energy, energy efficiency, heat and temperature manage ment, air ventilation and circulation efficiency and work environment improvement initiatives in the export-oriented textiles and leather industries.
In 2017, the BB as part of its move to widen the scheme reduced the interest rate of the scheme to six-month USD LIBOR plus 1 per cent instead of six-month USD LIBOR plus 2.25 per cent.
The exporters and manufacturers receives loan from the GTF for 5 to 10 years with 1 year grace period.
The borrowers were also allowed to repay the interest accrued for the grace period in equal quarterly basis without compounding.

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