Enamul Hafiz Latifee writes,
Bangladesh Bank (BB) has introduced €200 million Green Transformation Fund (GTF) on 15 April 2020 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 in the BB FE Circular No. 20, issued today, 15 April 2020.
In the 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 a 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.