BB lowers interest rate on pre-finance facility under SREUP

The Bangladesh Bank lowered the interest rate on pre-finance facility under Program to Support Safety Retrofits and Environmental Upgrades (SREUP) from 7 per cent to 5 per cent.

The 5 per cent interest will be applicable to all new and existing sub-loans under the project, according to a notice issued by the central bank on Monday.

Bangladesh Bank is implementing the SREUP project with a credit line of €50 million and donation of €10.29 million from French Development Agency (AFD), European Union and KfW Development Bank.

The interest rate to be paid by Participant Financial Institutions (PFIs) to the central bank for on-lending loan under this project is fixed at 2.5 per cent per annum, as per central bank notice.

Investment grants will be sanctioned on a first come, first served basis and this instruction will be effective from September 19, 2022.