BB re-fixes interest rate on pre-finance facility

Bangladesh Bank (BB) has re-fixed the interest rate on the pre-finance facility under the support safety retrofits and environmental upgrades programme (SREUP).

“The interest rate for pre-financing facility to all new sub-loans under SREUP has been re-fixed to a maximum of 7 per cent per annum, while interest rate on already sanctioned prevailing sub-loan will remain at 5 per cent per annum,” as per a BB circular issued on Tuesday, reports BSS.

As per the circular, the interest rate to be paid by the PFIs to Bangladesh Bank for the new On-Lending Loan (OLL) under this Project is re-fixed at 4.5 per cent per annum, where a margin for the PFIs is 2.5 per cent.

Investment grants will be sanctioned on a "first come, first served basis".

All other instructions of the aforesaid circulars will remain unchanged.

These instructions will come into force immediately and continue to be valid until further order.