Nine banks and five non-bank financial institutions (NBFIs) have signed deals with the central bank for loan disbursements to export-oriented industries from the technology upgradation fund.
Bangladesh Bank Deputy Governor Ahmed Jamal and representatives of the banks and NBFIs signed the deals at the central bank on Thursday.
The Bangladesh Bank in January formed the Tk1,000 crore refinancing fund for export-oriented industries in light of the Export Policy 2018-19.
The industries will qualify to avail the low-cost loans to upgrade technologies they currently use. The fund will run under a refinancing scheme, meaning banks will first give out the loans before being reimbursed by the central bank.
The tenure of the fund is from three to five years, and the loans are given at the interest rate of 5-6% with one year of grace period depending on bank-client relationship.
Replacement of outdated machinery, adoption of technology for renewable energy and upgradation of machinery used in business operations and waste management will get priority in terms of qualifying for loans from the fund.
The enterprises will only be able to avail the cheap loans to purchase machinery, while the loans are not meant for repairs, maintenance costs, consultancy costs or working capital.
The banks and NBFIs that signed the deals are Eastern Bank, Mutual Trust Bank, Mercantile Bank, Brac Bank, Southeast Bank, Exim Bank, Premier Bank, NRB Bank, Krishi Bank, IPDC Finance, IDLC Finance, Bangladesh Finance and Investment Company Ltd, United Finance, and Infrastructure Development Company.