Bangladesh Bank (BB) has decided to re-set interest rates on pre-finance facilities under the Support Safety Retrofits and Environmental Upgrades Programme (SREUP).
A BB circular states that “the interest rate for pre-financing under SREUP has been re-fixed at the customer level to a maximum of 7 per cent per year instead of the previous 5 per cent per year. This 7 per cent interest rate will apply to all new and existing sub-loans under SREUP.”
The circular states that PFIs will now pay Bangladesh Bank an interest rate of 4.5 per cent annually for new On-Lending Loans (OLL) under this scheme, which is a 2 per cent increase over the current rate of 2.5 per cent for PFI mergers. “First come, first served” policy will apply to the approval of investment grants; other guidelines in the aforementioned circular will not alter, the circular stated.
The instructions will take effect right away. The central bank already refixed the interest rates for pre-finance facilities under SREUP in 2022.