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

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