DHAKA, July 2, 2026 (BSS) – Bangladesh Bank (BB) has relaxed the eligibility criteria for Participating Financial Institutions (PFIs) under the Japan International Cooperation Agency (JICA)-assisted Urban Building Safety Project (UBSP), aiming to expedite financing for factory safety improvements in Bangladesh's readymade garment (RMG) sector.

To this end, the central bank today issued a circular, revising the Operating Guidelines of the Urban Building Safety Project (BD-P84) under Component-1.

According to the circular, Clause 4.1(6) of the project guidelines has been replaced with a new eligibility criterion requiring participating financial institutions to maintain a non-performing loan (NPL) ratio not exceeding 20 percent.
    
The amendment has been introduced to ensure the smooth implementation of the project by expanding the pool of eligible financial institutions capable of channeling funds for building safety upgrades.

Officials said the revised criterion is intended to facilitate faster credit disbursement for factory remediation and safety enhancement initiatives, helping improve workplace safety standards in the country's export-oriented garment industry.

The project is being implemented by Bangladesh Bank's SME & Special Programmes Department (SMESPD) in coordination with the JICA Project Implementation Unit (PIU).

Bangladesh Bank directed the Managing Directors and Chief Executive Officers of all participating financial institutions to incorporate the revised provision into their operational procedures with immediate effect.

The central bank also clarified that all other provisions of the Operating Guidelines will remain unchanged.