Deals signed with six banks for long-term financing
STAFF REPORTER
Bangladesh Bank (BB) signed separate agreements with six more private banks yesterday to facilitate long-term financing under the World Bank funded Financial Sector Support Project (FSSP), says a press release.
Under the agreements, the six banks - Dutch Bangla Bank Limited, IFIC Bank Limited, South East Bank Limited, Standard Bank Limited, Trust Bank Limited, and Standard Chartered Bank - would provide long-term financing for projects in manufacturing sectors.
Under FSSP fund for long-term financing, the banks can lend money for ventures in the industrial productive sectors for tenure of 3 to 10 years. The banks will have to pay interest rate between 3.25 per cent and 4.25 per cent to the central bank to use the refinance fund.
]The interest rate will be set considering the respective banks CAMELS rating. The banks will impose maximum three per cent interest rate spread to disburse the loan to the entrepreneurs meaning that the importers will be able to receive the loan from the banks by giving interest rate no more than 6.25 per cent.
