Regulatory Alerts2015-10-27
Added · Updated
FEPD Circular No. 18: Long Term Financing Facility under the Financial Sector Support Project
Bangladesh Bank establishes the Long Term Financing Facility to provide foreign currency loans to Participating Financial Institutions for on-lending to eligible private sector manufacturing firms. Participation requires PFIs to maintain a CAMELS rating of 3 or better, non-performing loans below 8 percent, and three years of audited financial accounts. Financing terms include maturities of 3 to 10 years with interest rates based on six-month USD LIBOR plus a spread ranging from 3.00 to 4.00 percent depending on the PFI's rating. The facility covers capital machinery, factory relocation, and transport vehicles, with loan approvals subject to environmental and social risk assessments.