Banks must sign deals to get green funding

Banks have to sign a participation agreement with Bangladesh Bank to get the benefits of the Green Transformation Fund (GTF).

Earlier in January this year, BB introduced the GTF worth $200 million for export-oriented firms in the textile and leather sectors with a view to encouraging them to set up eco-friendly factories. At that time, BB did not mention that the authorised branches of the banks will have to sign participation deals to get the funds for their clients.

The notice, which was issued on Sunday, also said the authorised dealers will have to write to the general manager of BB's sustainable finance department to enter into the agreement.

The banks will be allowed to use the fund if their non-performing loan ratio is not more than 10 percent.

Also, no banks will become eligible for the fund with shortfall in loan and investment provision, capital and liquidity.