BB creates 5,000c refinance scheme for green industries

Business Desk :
Bangladesh Bank (BB) on Wednesday introduced a refinancing scheme worth Tk5,000 crore to promote eco-friendly industries, especially in export-oriented sectors.
Under the scheme, the green entrepreneurs will be entitled to get loans at a 5% interest, according to a circular.
The banks will have access to the fund at a rate of 1% and will be allowed to keep a margin of 4%.
The duration of the revolving fund, financed from the BB, will be 5-10 years.
The green refinancing will be provided in local currency.
Bangladesh Bank has another similar scheme, Green Transformation Fund, worth $200 million and another €200 million to procure capital machinery and others meant for green industrialization.
Disbursement from these funds has now become slow due to shortage of foreign currencies.
The loans should be given to procuring capital machinery and other equipment required for green industrialization in the country. The sectors where the fund can be used are efficient use of water and wet processing, water conservation and management, waste management, resource efficiency and recycling, energy efficiency, renewable energy, heat, and temperature management, air ventilation and circulation efficiency, work environment improvement initiatives and other areas as indicated by the Bangladesh Bank from time to time.