RMG Safety Upgrade
IFC to provide $10m in loan to suppliers of VF Corp
The International Finance Corporation, a member of World Bank Group, will provide up to $10 million in loan to the suppliers of American clothing corporation VF Corporation in Bangladesh to improve fire and building safety. The IFC and its client BRAC Bank will lend the money to VF suppliers at lower interest rates to speed up fire and building safety upgrades.The VF will provide a full corporate guarantee in support of loans for its suppliers.
‘The safety of the people making our products around the world is an imperative,’ said VF chief executive officer Eric Wiseman, ‘Our programme with IFC helps to ensure that our suppliers have access to the necessary capital to complete safety improvement plans,’ he added.
Serge Devieux, IFC director for South Asia, said, ‘Employment in the apparel industry has reduced poverty for millions of women in Bangladesh. This financing model, which we think could work well for other buyers and suppliers, will help Bangladesh’s suppliers improve work conditions and strengthen the country’s ability to attract garment manufacturers.’
VF is a founding member of the Alliance for Bangladesh Workers Safety, a platform of 26 North American retailers and brands, which is working on the safety issues of Bangladesh garment sector
-With New Age input
