Germany will provide seven million euro as grant aimed at enabling an effective utilization of credit, promote workers' safety and improve environmental standards in the country's Ready Made Garments (RMG) factories.
The amount would be given through Germany's KfW and GIZ under the project "Financing of Environment and Safety Retrofits in the Bangladesh Ready Made Garments (RMG) sector".
Two separate agreements --Financial Cooperation (FC) and Technical Cooperation (TC) --were signed today in this regard, a German embassy statement said here.
Additional Secretary (Europe Wing) of the Ministry of Finance Muhammad Alkama Siddique and German Ambassador to Bangladesh Dr Thomas Prinz signed the agreements on behalf of their respective sides.
The objective of the projects are to enhance the capacity of the selected commercial banks to better address the funding needs of the RMG factories and to support the factories in bridging knowledge gap regarding investments and remediation upgrades and also supporting the actual implementation of these investments.
The project is a joint development effort by France, Germany and the European Union (EU).