Bangladesh Bank's Financing Schemes for Green Transformation and Technology Development

28 September 2023, Mumbai

Green Transformation Fund

BDT5,000 crore refinancing scheme

Long-term loans with a maximum interest rate of 5%

Factories can avail 70% of the costs of letters of credit against their required (machinery) imports as loans

Maximum loan amount of BDT200 crore

Can be used for water efficiency, conservation and management, waste management, resource efficiency and recycling, renewable energy, energy efficiency, heat and temperature management, ventilation and wind flow efficiency, working environment improvement initiatives, and other areas

Technology Development Fund

BDT1,000 crore scheme

Cheap loans to 100% export-oriented industries to upgrade the technologies they currently use

Tenure ranges from 3 to 10 years

Interest rate depends on the tenure (5% for less than five years, 5.5% for between 5 years and less than 8 years, and 6% for more than 8 years to 10 years)

Maximum of 1 year grace period

Can be used for replacing outdated machinery, adopting technology for renewable energy, and upgrading of machinery used in business operations and waste management.

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