Bangladesh Bank will provide long term financing in foreign currency under the Financial Sector Support Project (FSSP).
Small and medium scale manufacturing enterprise in the country will be entitled to get the finance, said a Bangladesh Bank circular issued yesterday with an immediate effect.
Interested banks may apply to the Project Director (PD) of FSSP for participating in the financing facility, said the circular.
The Government has signed a Financing Agreement (FA) on June 30, 2015 with the International Development Association (IDA) for the implementation of the FSSP.
The objective of the project is to improve financial market infrastructure of the country, regulatory and oversight capacity of Bangladesh Bank and access to long term financing mainly for manufacturing firms in Bangladesh.
Bangladesh Bank has also signed a Project Agreement (PA) with the IDA on the same date to carry out the tasks for implementation of the project, according to the circular.
This financing would be offered in US Dollars and provided to the Participating Financial Institutions (PFIs) authorised by BB to deal in foreign exchange for on lending or refinancing to the private sector firms
Any firm eligible to borrow in local currency from banking system as per foreign exchange regulations will be eligible to avail this facility. The maturity of the loans will be from 3 to 10 years.