Alliance negotiates loans for Bangladeshi garment factories
14/07/2015
"We are pleased to join forces with the IFC to launch this initiative, which promises to provide much-needed support to factory owners, speed the process of implementing repairs and help protect millions of garment workers," said Ellen Tauscher, chair of the Alliance.
Access to financing is traditionally expensive in Bangladesh, with most loans difficult to secure. This credit facility will allow loans to be paid back over a period of three to five years.
The Alliance will provide a team of inspectors to monitor that factory owners are making progress toward completion of their corrective action plans (CAPs). Timely progress on the CAPs is required under this arrangement in order for factory owners to maintain favorable loan terms.
The Alliance is a commitment between 26 global apparel groups, including VF Corp, dedicated to improving safety in Bangladesh's ready-made garment (RMG) factories.
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