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Participating banks will also be required to collect updated CIB reports before applying for refinancing support.

According to the BB, many export-oriented industries possess strong growth potential but have failed to expand because of inadequate access to financing. The refinance facility is expected to address this gap and encourage fresh investment in emerging export sectors.

Tk 10,000cr FOR AGRI AND LIVESTOCK

The scheme, the largest of the four, is aimed at boosting agricultural production, strengthening national food security and generating employment in rural areas.

Scheduled banks participating in BB’s agricultural and rural credit programme will receive refinancing at 4 percent and may lend to farmers and entrepreneurs at a maximum of 8 percent.

The five-year fund, financed from the central bank’s own resources, will be managed by its Agricultural Credit Department-1.

The scheme covers crop cultivation, fisheries, livestock, agricultural machinery, irrigation equipment and other income-generating agricultural activities.

Small and marginal farmers may obtain loans of up to Tk 5 lakh for crop production without collateral, against crop hypothecation.

Loan ceilings have been set at Tk 30 lakh for crop production; Tk 15 lakh for livestock and other agricultural activities; Tk 20 lakh for agricultural machinery; and Tk 1 crore for fisheries and livestock projects.

Banks will be required to maintain separate accounts, submit regular reports and ensure proper monitoring of loan utilisation and recovery under the scheme.

Tk 1,000cr FOR GREEN INDUSTRIES AND FACTORIES

The fund is designed to accelerate investment in green industries and environmentally sustainable factory buildings, in support of Bangladesh’s climate and sustainable development goals.

Under the scheme, banks and financial institutions will be able to access refinance support at a 2 percent interest rate -- the lowest rate among the four schemes -- and lend to eligible borrowers at a maximum of 5 percent.

The scheme’s tenure will range from three to 10 years, with a grace period of up to one year. The fund, sourced from Bangladesh Bank’s own resources, will take immediate effect.

The facility will finance the establishment of green industries and factory buildings certified or pre-certified under internationally recognised standards, including LEED, EDGE, BEEER and GreenARCH.

A single borrower may receive up to Tk 100 crore, with projects required to maintain a minimum debt-equity ratio of 70:30. Defaulted borrowers will not be eligible.

Participating banks and financial institutions must comply with the BB’s sustainable finance, environmental and social risk management, and climate risk management and disclosure guidelines.

MONITORING

To access any of the four facilities, scheduled banks must sign participation agreements with the BB and meet all relevant risk management and regulatory requirements.

The central bank will monitor fund utilisation through reporting requirements and on-site inspections. Misuse of funds, submission of inaccurate information or non-compliance with scheme conditions could result in cancellation of refinancing facilities and financial penalties.