BB arranges awareness promgramme for RMG sector

Bangladesh Bank (BB) arranged an Awareness Programme for "Programme to Support Safety Retrofits and Environmental Upgrades in the Bangladeshi RMG Sector (SREUP)" on 3 August in Hotel InterContinental, Dhaka.

Representatives from the lead partner of the project French Development Agency (AFD), the European Union (EU), KfW, potential beneficiaries from RMG sector, PFIs, BGMEA and RMG Sustainability Council (RSC) were present.

The project has been designed to strengthen the sustainability of RMG sector through the credit facility of 50 million euro provided by AFD and 10.29 million euro grant from EU and KfW, said a press release.

Bangladesh Bank, on behalf of Bangladesh government, is also providing 0.99 million euro as credit. The project is being implemented by Bangladesh Bank to provide soft loans to the RMGs though the PFIs for safety retrofitting and environmental and social up gradation of the factories.

The programme was inaugurated with a speech from the Executive Director of Bangladesh Bank Md Obaidul Hoque, followed by remarks from the Head of Co-operation of EU Maurizio Cian, an address from the Country Director of AFD Benoit Chassatte, and Joint Secretary of FID from the Ministry of Finance Kamrul Haque Maruf.

Remarks were delivered by the chief guest of the programme Deputy Governor of Bangladesh Bank Abu Farah Md Nasser and the Project Director of SREUP and Dirctor (SREUP) Moni Shankar Kundu provided the Vote of Thanks.

The deputy governor, in his remarks, mentioned the benefits of lower interest rate and investment facility regarding SREUP and inspired the RMGs to avail the facility to be sustainable. A brief presentation on the SREUP credit line was given by Joint Director of BB Kumkum Sultana.

The factories that have availed the facility and have completed their task as per the proposed plan were awarded Investment Grant by BB. Dummy cheques were handed over to them by the chief guest. The factories were MT sweaters Ltd, a client of Mercantile Bank Limited and Snowtex Outerwear Ltd, a client of Southeast Bank Limited. Both the factories are 100% export oriented.

A panel discussion on "Innovative and Green financing opportunities for RMG sector: Role of Different Stakeholders" was moderated by the Additional Director and Deputy Project Director Nawshad Mustafa.

For the panel discussion, Executive Director of Bangladesh Bank Md Obaidul Hoque, Managing Director of IPDC Finance Ltd Mr. Mominul Islam, SEVP and Head of CRM of Southeast Bank Limited Md Masum Uddin Khan, Chairman of Bangladesh Bank related Standing Committee, BGMEA Mazharul Hasan Jewel, Managing Director of RSC Iqbal M Hussain and Executive Director of Masco Group ATM Mahbubul Alam Chowdhury were present as panelists.

The panellists discussed the innovation and effectiveness of green financing in this sector. Questions were taken from the audience and answered by panelists that focused mainly on the challenges of financing in the current perspective through access to credit and their possible solution. The participants in the panel discussion expressed their expectation that the innovation in green financing in the RMG sector could be a game changer in the industry which will further strengthen the capacity and will enhance the sustainability of Bangladesh RMG sector in the world market.