The Bangladeshi central bank has decided to restrict credit facilities for polluting industries in an initiative to protect environment and combat climate change, leading English newspaper The Daily Star reported on Sunday.

"No more credit facilities for the industries which will pollute environment," Bangladesh Bank Governor Atiur Raman said while he was speaking for the central bank officials at a seminar on "Climate change management".

Atiur said action would be taken against those banks which would provide credit facilities to the industries responsible for environment pollution.

He said Bangladesh Bank has created a fund of 2 billion taka (US$28.6 million) to address the environmental issues and climate change. Every industry might have 10 million taka (US$143,000) loan for setting up Effluent Treatment Plant (ETP) from the fund, he said.

The central bank is ready to increase the size of the fund and give up to 50 million taka (US$715,000) if the industrialists agree, he said, urging the commercial banks to come up with more credit facilities for environment-friendly industries.

Atiur also said that a coordinated policy should be put in place considering the affects of climate change and country's economic development. He asked the bankers to make their best efforts to improve financial system in an attempt to meet the challenges of climate change.

(Xinhua News Agency December 28, 2009)