DHAKA, April 15, 2020 (BB) – Bangladesh Bank (BB) has introduced €200
million Green Transformation Fund (GTF) along with the existing US$200
million to set up environment friendly infrastructures.
“A decision has been taken to introduce €200 million along with the existing
$200 million. Accordingly, participating Authorized Dealers (ADs) will
now be in a position to draw loans in euro from GTF at the rate of
Euro Interbank Offered Rate (EURIBOR) plus 1 percent for the
admissible purposes,” said a BB circular issued today.
In case of EURIBOR remaining in negative territory, ADs will be
charged only at the rate of 1 percent against their borrowing from the
fund. As usual, ADs shall determine their mark-up above the borrowing
cost within the specified range of 1 to 2 percent.
The central bank also decided that financing on long term basis (5 to
10 years) from GTF in Euro will be admissible to all manufacturing
industrial enterprises for importing of environment friendly and
energy efficient (including solar energy and renewable energy under
power sector) or green capital machinery and accessories (including
buyer’s credit).
This GTF in Euro is also to widen the scope to import (only buyer’s
credit) industrial raw materials used in all manufacturing enterprises
including both export oriented and deem exporters.
Other relevant instructions with regards to operations of GTF shall
remain unchanged.