![](https://media.vdb-loi.com/wp-content/uploads/2023/09/environmental-friendly.png)
Circular No. 02 dated 30 August 2023 issued by the Sustainable Finance Department of the Bangladesh Bank on “Refinancing Scheme for Environmentally-Friendly Products, Projects, and Initiatives”
September 6, 2023Aiming to increase environmentally-friendly initiatives, the Bangladesh Bank has announced a refinancing scheme formed for eco-friendly products, projects, and initiatives.
With funding of BDT 4,00,00,00,000 , affordable loans will now be available for pre-certified green industries, green buildings, and buildings featuring green initiatives. Customers must have first obtained final certification before being eligible to apply for such a loan. The Bangladesh Bank will charge banks 1% interest for use of the funding with customers paying 5% interest on all term loans (except for those designated as a government priority sector).
Government priority sectors, such as solar irrigation pump products for the agricultural sector, will bear interest of a maximum of 3%. Customers will get BDT70 for an investment of BDT100.
The loan period for products will be from 3-10 years, with affordable green housing loans available for 20 years at 5% interest.
State-owned banks will be able to give loans under the refinancing scheme without any conditions. However, for commercial banks to participate, their non-performing loans must be below 10%.
The circular specifies 70 eco-friendly products, projects, or initiatives for which loans are available.
KEYWORDS
RELATED EXPERIENCES
Related Articles
- Regulatory Guidelines for Prepaid Instruments in Bangladesh: Ensuring Financial Inclusion and Consumer Protection
- July 1, 2024 - Bangladesh Bank Mandates Alternative Dispute Resolution for Non-Performing Loan Recovery to Strengthen Dispute Resolution in Banking
- June 3, 2024 - Bangladesh Bank Adopts Crawling Peg System for US Dollar Exchange Rate
- June 3, 2024 - Stimulating Foreign Currency Reserves: Tax Breaks for Offshore Banking in Bangladesh
- May 2, 2024 - Regulatory Directive Impacts Industrial Establishment Access to Utilities and Financial Support
- May 2, 2024