In an announcement, Wal-Mart Stores Inc informed its investors last Thursday that it is contemplating on providing up to USD50 million in low interest loans or other types of payments for factory owners in Bangladesh to improve their buildings and structures.
The fund is but part of a larger USD100 million in loans and other facilities that companies from North America had promised last July. These companies include Wal-Mart and Gap Inc. There are still matters to be addressed through, such as lending rates when the fund is tapped as well as approval from the country' central bank for any foreign currency denominated loans are to be allowed.
The push for the improvement of the safety of workers and structural integrity of factory facilities comes after 1,129 workers perished when a garment plant collapsed last April, Last November, another 112 individuals died in fire in a factory also in Bangladesh.
Last July, the Alliance for Bangladesh Worker Safety was formed comprising several North American companies such as Wal-Mart. This is a separate entity from a Europe initiated group, known as Accord on Fire and Building Safety in Bangladesh.
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