The Pulse Today
BREAKING
MP Azharul Islam Mannan Distributes Relief Funds to Needy Families in SonargaonParliament Proposes Anti-Gambling Bill with Maximum 7-Year Prison PenaltyOpenAI Unveils 'Schedule' Feature to Boost Task Management in AI ChatbotPrime Minister Tareq Rahman Arrives in Dalian, China for Economic ForumEurope Confronts Intense Heatwave; Conditions Predicted to DeteriorateGold Prices Rise Again in Bangladesh Amid Global Market IncreaseSpaceX's Nasdaq Debut Values Company at Over $2 Trillion, Surpassing AmazonStudy Reveals AI Data Centers Contribute to Local Temperature IncreasesNarayanganj BNP Youth Wing Holds Rally to Welcome New Central CommitteeMP Mannan Announces Special Plan to Promote Sonargaon GloballyBangladesh Bank Eases NPL Criteria to Speed Up JICA Urban Building Safety ProjectParis Opera House Renovations Delayed by Three Years Due to Lead ContaminationDhaka Stocks End Six-Session Winning Streak Amid Profit-TakingBangladesh Bank Launches Forward Rate Agreements to Mitigate Importer RisksBangladesh Sees 25.91% Increase in Merchandise Exports for JuneDSE Praises BSEC's Grant of Regulatory Autonomy to Stock ExchangesAsia Markets Decline as Tech Stocks Face Pressure from Investor ConcernsHarry Kane Matches Just Fontaine's All-Time World Cup Goal Record with 13 GoalsBangladesh Bank Introduces Updated Guidelines for Agricultural Development FundBangladesh Bank Grants 3 Months to 4 Finance Companies for RestructuringBangladesh Bank Limits Bangla QR MDR to 1% for Government PaymentsMeta's Stock Rises 6% Following Announcement of New AI Cloud ServiceBEPZA Initiates Nationwide Tree Plantation Drive in Export Processing ZonesBSEC Conducts Financial Literacy Training at Dhaka Commerce CollegeCCGP Approves Import of 75,000 Tonnes of MOP Fertilizer to Stabilize Agricultural Supply

Bangladesh Bank Eases NPL Criteria to Speed Up JICA Urban Building Safety Project

Bangladesh Bank has relaxed the non-performing loan (NPL) criteria for financial institutions participating in the JICA-assisted Urban Building Safety Project to accelerate funding for safety improvements in the RMG sector.

By Staff Correspondent
Share
BB eases NPL criteria to accelerate JICA-assisted urban building safety project | Business
BSS

Bangladesh Bank (BB) has relaxed the eligibility criteria for Participating Financial Institutions (PFIs) under the Japan International Cooperation Agency (JICA)-assisted Urban Building Safety Project (UBSP). The move aims to expedite financing for factory safety improvements in Bangladesh's readymade garment (RMG) sector. The central bank issued a circular revising the Operating Guidelines of the Urban Building Safety Project (BD-P84) under Component-1.

Revised NPL Criteria

According to the circular, Clause 4.1(6) of the project guidelines has been replaced with a new eligibility criterion requiring participating financial institutions to maintain a non-performing loan (NPL) ratio not exceeding 20 percent. This amendment is intended to ensure the smooth implementation of the project by expanding the pool of eligible financial institutions capable of channeling funds for building safety upgrades.

Objective and Implementation

Officials said the revised criterion is intended to facilitate faster credit disbursement for factory remediation and safety enhancement initiatives, helping improve workplace safety standards in the country's export-oriented garment industry. The project is being implemented by Bangladesh Bank's SME & Special Programmes Department (SMESPD) in coordination with the JICA Project Implementation Unit (PIU).

Immediate Effect and Unchanged Provisions

Bangladesh Bank directed the Managing Directors and Chief Executive Officers of all participating financial institutions to incorporate the revised provision into their operational procedures with immediate effect. The central bank also clarified that all other provisions of the Operating Guidelines will remain unchanged.

Significance for the RMG Sector

This revision is significant for the RMG sector, which is a crucial part of Bangladesh's economy. By easing the NPL criteria, more financial institutions can participate in the project, leading to quicker funding and implementation of safety measures. This, in turn, is expected to enhance workplace safety, reduce accidents, and improve the overall working conditions in garment factories.

Source: BSS

FAQ

What is the Urban Building Safety Project (UBSP)?
The UBSP is a JICA-assisted project aimed at improving building safety in Bangladesh's RMG sector.
What change has Bangladesh Bank made to the project guidelines?
Bangladesh Bank has revised the NPL criteria, allowing PFIs with an NPL ratio not exceeding 20 percent to participate.
Why was this change made?
The change was made to expedite financing for factory safety improvements and enhance workplace safety standards in the RMG sector.

Topics

Comments

More in business

See all →

Latest stories