FEPD Circular No. 32: Green Transformation Fund for export oriented textile & textile products and leather manufacturing industries

The document reduces the interest rate charged to Authorized Dealers for loans under the Green Transformation Fund from six-month USD LIBOR plus 2.25 percent to six-month USD LIBOR plus 1.00 percent. Authorized Dealers must determine their own loan interest rates to borrowers by covering their cost of borrowing from the Fund and operational expenses, plus a reasonable risk-adjusted spread and profit margin typically expected to be in the range of 1.00 to 2.00 percent above the cost of borrowing. This revised rate applies from the date of the circular, while other instructions in this context remain unchanged.

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Foreign Exchange Policy Department
Bangladesh Bank
Head Office
Dhaka www.bb.org.bd
FE Circular No.-32 Date: August 17, 2017
All Authorized Dealers of
Foreign Exchange in Bangladesh
Dear Sirs,
Green Transformation Fund for export oriented textile & textile products and leather manufacturing industries Please refer to paragraph 6(a) of the FE Circular No.-02 dated January 14, 2016 regarding interest rate against the loan under Green Transformation Fund.
02. In order to encourage ADs to use the Fund, it has now been decided that reduced
interest @ six-month USD LIBOR plus 1.00 percent shall be charged to ADs instead of existing six-month USD LIBOR plus 2.25 percent against the financing. ADs will determine their own loan interest rates to the borrowers covering their cost of borrowing from the Fund and operational expenses, plus a reasonable risk-adjusted spread and profit margin (now typically expected to be in the range of 1.00 ~ 2.00 percent above the cost of borrowing). Other instructions in this context shall remain unchanged. Above revised rate will be applicable from the date of this circular. Please bring the contents of this circular to the notice of all your concerned constituents. Yours faithfully, (Jagannath Chandra Ghosh) Deputy General Manager Phone: 9530092

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This document amends: FEPD Circular No. 02: Green Transformation Fund for export oriented textile and leather manufacturing industries

Source: Bangladesh Bank — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works