Bangladesh Bank (BB) received 75 project proposals involving about US$ 35.29 crore till June 30 from export-oriented companies to facilitate long-term financing under the World Bank funded Financial Sector Support Project (FSSP).
“We have already sanctioned 43 proposals with $19.28 crore, of which $10.01 crore of 31 proposals has been disbursed, the rest of the sanctioned amount is under the process of disbursement,” a BB official told on Thursday.
Out of the total sanctioned funds, some have been disbursed partially and some more are under the process as the amounts will be disbursed through opening Letter of Credit (LC) for importing machineries, he added.
Out of the total applications received through commercial banks, the central bank is processing three proposals and 16 proposals have been closed by the World Bank and the Bangladesh Bank for ‘substantial impact on environment and shipping’, the BB official said.
He said BB has also declined seven proposals with $2.39 crore for various reasons while six proposals with $2.55 crore have been discontinued by the participating financial institutions (PFIs).
BB also refinanced the five proposals with $13.28 lakh, he added. “We have submitted proposals of four companies involving $3.46 crore, of which two companies have already been given their sanctioned funds amounting to $2.01 crore” said Executive Vice President of the Southeast Bank Limited (SEBL) Abdul Baten Chowdhury.
The four companies are T-Design Knitwear Limited, SNOWTEX, Jahan Marine Private Limited and KC Jacket Wear Company.
Out of the total submitted proposals, Baten Chowdhury, also head of the Principal Branch of the bank, said, two proposals have already been approved and the rest two proposals awaits approval.
Out of the two approved proposals, Senior Assistant Vice President of SEBL M Roushon Ali said, T-Design Knitwear Limited has already got its sanctioned amount and imported capital machineries.
BB under the auspices of International Development Association (IDA) of the World Bank would provide a total of $35 crore under FSSP, which would play a pivotal role in meeting the growing demand for long-term financing for productive sectors in the country.
BB has signed separate Participating Financial Institutes (PFI) agreements with 31 banks to distribute the long-term finance among the country’s export oriented industries.
Of the total amount, World Bank will provide $30 crore and rest of the amount will come from BB’s own fund. The tenure of the project is July 1, 2015 to March 31, 2021.
Under the FSSP fund for long-term financing, the banks can lend money for ventures in the industrial productive sectors for tenures of five to 10 years with the condition that the banks would pay interest rate between 2.50 percent and 3.50 percent, including LIBOR (London Inter Bank Offered Rate) depending on the category of banks.
The interest is being fixed considering the respective bank’s CAMELS (Capital, Assets quality, Management, Earning, Liquidity, and Sensitivity) rating, a recognized international rating system that bank supervisory authorities use in order to rate financial institutions.
