UNB, Dhaka :
Bangladesh Bank is likely to sign contracts with Islamic banks and non-banking financial institutions (NBFIs) to introduce a Shariah-based refinancing scheme to promote green energy projects.
According to official sources, the representatives of the Islamic banks and Islamic NBFIs have agreed with a proposal of the central bank at a meeting on Thursday to sign the agreement and operate the newly formed refinancing scheme.
With Bangladesh Bank deputy governor Abul Quasem in the chair, the meeting was also attended by two other central bank deputy governors Abu Hena Razi Hasan and SK Sur Chowdhury.
A top official of the Bangladesh Bank, who attended the meeting, informed that after a discussion on different issues of the refinancing scheme, finally the representatives of Islamic banks and Islamic NBFIs agreed with the central bank to get involved in the project under which they will finance different green energy projects to promote renewable energy in the country.
He said the Islamic banks and NBFIs will be invited to sign agreement next week with central bank for the project.
“Hopefully, formal launching of the refinancing scheme and signing ceremony will take place next week after the return of Bangladesh Bank governor Dr. Atiur Rahman who is now visiting USA,” the official said.
He said the size of the refinancing project might be Tk 1000 crore that initially was thought to be Tk 2000 crore.
Central bank officials said that this is completely a new scheme and it was formed through the funds now remained deposited with the central bank by different Islamic banks and NBFIs under different heads as per banking provisions.
Earlier, the central bank issued specific guidelines for the use of the fund from the refinancing scheme.
Under the guidelines, the interested Islamic banks and NBFIs will have to sign separate agreements with the BB’s Green Banking and CSR Department to become the partners of the scheme.
After signing the deal, the banks and NBFIs will be known as participating financial institutions (PFIs).
According to the sources, the banks and NBFIs may lend 100 percent of their refinancing fund to the renewable energy and eco-friendly projects, but the projects should be selected from the current list of 47 products, prepared by the central bank.
At present, eight Islamic banks and two Islamic NBFIs are operating in the country.
