The apex bank of Bangladesh has extended its refinancing scheme of easy loans to the garment sector for improving safety standards in garment production units.
This loan upto Taka 10 million, which can be borrowed from commercial banks or non-financial institutions, would be extended to garment factories that need finance to improve safety standards.
However the soft loan comes with a rider that the loan seeking factory has to be a member of the Bangladesh Garment Manufacturers & Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers & Exporters Association (BKMEA) or Bangladesh Textile Mills Association (BTMA).
The credit facility would be extended to only import and install safety related machinery and equipment, the apex bank said.
Following the two garment unit tragedies in Bangladesh and the resultant deaths of workers, there is pressure on garment factories to improve worker safety standards in factories.
