Japan will give Tk 1 billion in credit to Bangladesh to increase the load-carrying capacity of risky buildings that house readymade garment factories, a Bangladesh Bank official says.
Japan International Cooperation Agency (JICA) has offered the ‘soft loan’ to Bangladesh Bank, the central bank’s SME and Special Programs Department General Manager Sukamal Sinha Choudhury told bdnews24.com.
The money will be distributed through the scheduled banks, he said.
“JICA is providing the loan on an urgent basis to ensure safety and improvement of the working condition in the garment industry.”
Central bank officials said an entrepreneur will initially be allowed Tk 1 million. Highest 250 garment owners will receive the soft loan and they will given 10 years including a two-year grace period to pay back the loan.
Officials said the credit amount might increase later.
The JICA credit comes at a time when Bangladesh is facing global criticisms over workplace safety at the factories after more than 1,100 people, mostly garment workers, were killed in a building collapse at Savar last month.
GM Choudhury said JICA had taken the initiative to increase the foreign buyers’ reliance on Bangladesh’s garment products. “Only the entrepreneurs in garment sector will be given the loan to prop up the safety of the building.”
A meeting on the issue also took place on Tuesday between the Japanese state agency and Bangladesh Bank.
Bank officials said the loan will be given under JICA’s SME programme.
Japanese experts from JICA would come to Bangladesh and visit the buildings housing garment factories and the loan distribution will follow their recommendations.
In the worst building collapse in known history, 1,127 people died after the nine-storey Rana Plaza collapsedon Apr 24. Over 1,500 people were also injured. Most of the dead and injured were workers at five garment factories housed on the commercial block.
A government committee looking into the working condition at factories has already marked a few hundred factories ‘risky’.
Source: Bd news24
