The following type of companies will be eligible for loans under SREUP:
- RMG factories which are:
- Registered as an export-oriented unit
- OR members of BGMEA, BKMEA or BGAPMEA
- OR covered under Accord, Alliance, NTPA.
- Companies which own buildings where at least one RMG factory is located.
- The company has at least annual audited reports for three years.
- The company should not access any other concessional financing for this project
Bangladesh Bank has appointed an independent Technical Assessor to determine:
- If the project is eligible under the SREUP line of credit
- If the project has been successfully implemented and the company can receive the incentive grant.
The process to be followed is as follows:
Eligible factory applies to PFI for a loan
PFI forwards the loan appraisal to BB PMU
BB forwards the loan appraisal to TA for decision on eligibility under loan criteria
If eligible, BB disburses amount to PFI
PFI disburses amount to company which implements the project
After completion of project, company approaches PFI for the incentive grant
The PFI approaches BB PMU for Incentive Grant
BB PMU forwards request to TA for decision on successful completion on the project
If eligible, BB disburses incentive grant to PFI
PFI credits loan account to the extent of 90% of the incentive grant, retaining 10%
You can also see a diagrammatic representation of the process in the Bangladesh Bank circular dated March 31, 2019.
BB = Bangladesh Bank
PFI= Participating Financial Institution
PMU = Project Management Unit (of the Bangladesh Bank)
TA = Independent Technical Assessor