The government of Bangladesh has launched a €200 million ($217 million) Green Transformation Fund to offer soft loans for the import of environmentally-friendly products and energy efficiency components from Europe.
A senior official at the central bank of Bangladesh has told pv magazine the fund can be expanded from the lender’s euro reserves if there is sufficient demand.
“This fund will facilitate importing green equipment and machinery from [the] Eurozone,” said the source.
The move comes after the government opened a similar, dollar-denominated $200 million fund in January 2019.
The central bank will charge lenders authorized to distribute the loans the Euribor Eurozone daily interbank lending rate plus 1%, with that figure just 1% on days when the European rate is at zero or negative. Loan distributors will then be able to charge up to 2% on top of their own costs to issue funds for up to ten-year periods.
(Source: PV-Magazine)
