DHAKA: The Japan International Cooperation Agency (JICA) will provide Tk 100 crore loan for the development of garments sector of Bangladesh.

A Memorandum of Understanding (MoU) was signed in this regard between JICA and Bangladesh Bank (BB) at a city hotel on Thursday.

The MoU was signed by BB General Manager and project director Sukomol Sinha Chowdhury, Chief Engineer of Public Works Department Kabir Ahmed Bhuiyan, vice president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Shahidullah Azim, second vice president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) AH Aslam Sani and JICA senior representative Hiroyuki Tomita.

BB Governor Dr Atiur Rahman said, “Rana Plaza collapse revealed a negative picture of Bangladesh’s garment sector. But I want say that it was our lesson. We have learnt about our capability from the disaster which will result into development.”

Sources said that JICA will provide the loan to Bangladesh Bank in three phases. The banks can borrow at 5 percent interest rate from Bangladesh Bank and can lend at 10 percent rate to the garment owners.

While there will be chance of variance in lending rate in regard of good terms. Any bank can lend at 6 percent interest rate to any good client.

BB governor urged the banks to lend RMG owners at lowest interest and owners to ensure good terms with workers.

The deal signing ceremony was attended, among others, by Ambassador of Japan to Bangladesh Shiro Sadoshima, BGMEA president Atikul Islam and chief representative of JICA Bangladesh office Dr Takao Toda.

BDST: 1239 HRS, OCT 03, 2013
AKA/BSK