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The Asian Development Bank (ADB) will provide US$20 million loan to the country’s private sector in a bid to support textile and clothing industries.
The Manila-based lender on Monday signed a $20 million loan agreement with Eastern Bank Ltd (EBL) to this end.
Christine Engstrom, Director for ADB’s Private Sector Financial Institutions Division, and Ali Reza Iftekhar, Managing Director and CEO of EBL, signed the agreement at a programme in the city.
The EBL will provide the loan to several private sector textile and garment manufacturers with a competitive lending rate.
ADB in a statement Monday said the loan will be used to finance socially and environmentally sustainable projects in textile and garment sectors. Specifically, the assistance will finance the construction or expansion of textile and garment factories which will meet the high structural, fire and electrical safety standards.
“The textile and garment sectors are essential parts of the country’s economy, raising income for large numbers of workers, particularly women,” said Ms Engstrom.
Bangladesh is currently the second largest exporter of textile and garment products, accounting for about 15 per cent of the gross domestic product (GDP) and employing over 4.0 million workers, 85 per cent of whom are women.
However, making the industry a safe place to work is essential to maintain its position as a driving force of economic growth.