Alliance for Bangladesh Worker Safety, says that its goal is to create a credit facility of $20-35 million via five local banks. The facility would be in US dollar denominated currency, enabling lower interest rates. The group will provide technical assistance to the financial organisations on remediation progress to encourage banks to extend loans to the Alliance-linked factories, especially small and medium enterprises besides covering administrative and startup costs and up to $2.0 million in a first-loss guarantee, it added.
America’s VF Corporation, teamed up with International Finance Corporation (IFC) in September last year to provide $10 million for financing fire and building safety improvements in the RMG sector. Three local apparel makers have already got funds under the move.
As for post-inspection activities, initial assessment of fire, electrical and structural integrity were conducted in all its listed 647 factories, while 300 corrective plans were approved. The official review panel closed down five factories while 12 were partially closed and two are operating reducing their load.
The Alliance has also announced its plan to conduct its final assessment in at least 60 units by July next following its verification programme in line with the corrective action plans in more than 100 units. The Alliance is concerned that its efforts have slowed due to current violence, turmoil and uncertainty. It appealed all parties who are committed to a vibrant and successful Bangladesh to resolve differences through dialogue rather than violence, says the statement.
