Questions asked by Participating Financial Institution Managers
No. Only fresh projects sanctioned after the signing of the agreement between your financial institution and the Bangladesh Bank can be covered under the line of credit.
2.5% per annum. At RMG end, the highest rate of interest will be 7% per annum. Bangladesh Bank will charge the PFI 4.5% per annum, allowing for a 2.5% spread for the PFIs. Of the 4.5% charged by Bangladesh Bank, 0.25% will be kept as the service charge of Bangladesh Bank and 4.25% will be deposited in government account as the interest rate to the Government of Bangladesh.
The borrower has to have a minimum of three-year audited accounts.
Yes and no prepayment penalty can be charged.
It is a pre-financing scheme so it is expected that the participating financial institution will disburse loans to the borrower only after receiving the amount from Bangladesh Bank.
The disbursement to the sub borrower will be done as per the needs of the client (expected within 1 to 3 tranches).
The tenor, grace period, the frequency of instalment and interest payments of the loan to the borrower and the loan from Bangladesh Bank to the Participating Financial Institution will match.
No. The RMG factory should not have received any other concessional financing for this project
Questions asked by Ready Made Garment Factory Managers & Local Service Providers
Yes. Investments for construction or upgradation of Effluent Treatment Plants can be covered under this line.
No. There are no restrictions from where you can source your equipment.
Bangladesh Bank will try and get back to your Financial Institution within about 21 days.
No. You need to complete your safety retrofits before your investment in environmental and social areas (to be eligible under this line of credit). But on a case by case basis, the Independent Technical Assessor may determine that you can implement these projects simultaneously.
The capital expenditure for expansion of production would not be eligible for the loan fund. But environmental project items such as energy efficiency, pollution control and social project item could be covered under the line (assuming that safety compliance has been reached)