BB eases loan rules for garment safety project

Bangladesh Bank has relaxed the lending conditions under the Japan International Cooperation Agency (JICA)-supported Urban Building Safety Project (UBSP) to facilitate financing aimed at improving workplace safety in the country’s export-oriented ready-made garment (RMG) sector.

The central bank announced the decision in a circular issued on Thursday by its SME and Special Programmes Department.

According to the circular, Clause 4.1(6) of the project’s Operating Guidelines has been amended to make the financing scheme more accessible to participating financial institutions.

Under the revised policy, participating financial institutions with a non-performing loan (NPL) ratio of up to 20 percent will now be eligible to receive financing under the project. The previous guideline imposed a different eligibility requirement.

Bangladesh Bank said the relaxation is intended to expand access to financial support for factory safety improvements and accelerate the implementation of the Urban Building Safety Project.

The central bank added that all other provisions of the project’s Operating Guidelines will remain unchanged.

The revised directive will be applicable to all recognised Participating Financial Institutions (PFIs) involved in implementing the JICA-supported programme.