B’desh government to make RMG factories ‘decent place to work at’

The Bangladesh government has established a loan fund of US $ 56 million for financing country’s ready-made garment (RMG) sector especially for its safety and environmental upgradation.

The loan fund has been established in Bangladesh Bank with the aid of Agence Francaise de Developpement of France. The objective is to make the RMG factories safer, greener and, importantly, a ‘decent place to work at’ in terms of social compliance.

The fund will help the RMG factories invest in safety retrofits and environmental upgrades. The eligible garment factory will get a loan of US $ 1.12 million from the loan fund at an interest rate of 7 per cent. Those going for larger upgrades could even be eligible for loan up to US $ 3.37 million.

Besides, technical assistance worth US $ 16.04 million will be provided to successful garment factories, which is an initiative between the KfW Development Bank (Germany) and the European Union. This programme also focuses on training RMG managers in the areas of safety remediation and technical upgrades as well as on available financial options.

This announcement of establishing loan fund came in the aftermath of recent analysis data which showed Government’s unwillingness to take over Accord’s work.

1519/apparelresource/050419//MKMA7

Back to Home