Bangladesh Bank Announces Interest Rate Adjustments for SREUP Pre-Finance Facilities

The Bangladesh Bank has adjusted the interest rates for pre-finance facilities within the framework of the support safety retrofits and environmental upgrades program (“SREUP”). For all new sub-loans under SREUP, the interest rate for pre-financing facilities has been capped at 7% per annum, while the interest rate for previously approved sub-loans will remain fixed at 5% per annum. According to the circular, the interest rate to be paid by participating financial institutions to the Bangladesh Bank for new on-lending loans under the program has been revised to 4.5% per annum, with a 2.5% margin for the financial institutions. Investment grants will be allocated on a first-come, first-served basis. All other instructions outlined in previous circulars regarding this program will remain unchanged.