BB re-fixes interest rate on pre-finance facility under SREUP to 7%
Banking
Bangladesh Bank (BB) has decided to re-fix interest rates on pre-finance facilities under the Support Safety Retrofits and Environmental Upgrades Programme (SREUP).
"At the customer level, the interest rate for pre-financing under SREUP has been re-fixed to a maximum of 7% per annum instead of existing 5% per annum. This 7% interest rate will be applicable to all new and existing sub-loans under SREUP," as per a BB circular issued today (16 April).
According to the circular, the interest rate paid by PFIs to Bangladesh Bank for new On-Lending Loan (OLL) under this project has also been re-fixed at 4.5% per annum, a 2% jump from the existing rate, where merging for the PFIs is 2.5%.
Investment grants will be sanctioned on a "first come, first served" basis; and other instructions of the aforesaid circular will remain unchanged, added the circular.
The instructions will come into effect immediately.
The central bank had earlier re-fixed the interest rates on pre-finance facilities under SREUP in 2022.
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