BB mulling rescue plan for Standard Group

Siddique Islam | Published: December 06, 2013 00:00:00 | Updated: November 30, 2024 06:01:00

The central bank is set to devise a rescue plan for revamping business activities of the fire-ravaged Standard Group through settling import liabilities with five banks.
Bangladesh Bank (BB) governor Atiur Rahman will meet chief executive officers and managing directors of the banks on Sunday for finalising the plan in this connection.
This was disclosed at a meeting with top management of the Standard Group held at the central bank Thursday with the BB governor in the chair.
Â "We've sought cooperation from the BB to settle our US$53 million import-related liabilities with the commercial banks," Mosharraf Hussain, managing director of the Standard Group, told the FE after the meeting.
At the meeting, the BB senior officials were informed about different financial matters including import-related liabilities with the banks.
The banks are the Prime Bank Limited, the Shahjalal Islami Bank Limited, the Standard Chartered Bank, The Hongkong and Shanghai Banking Corporation Limited, generally known as HSBC and the Citibank N.A
Â "The BB governor has assured us of looking into the matter positively," Atiqul Islam, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told the FE after the meeting.
He also said the central bank will finalise its decision in this regard Sunday after holding a meeting with the chief executives of five banks.
The group has incurred a financial loss of Tk 12 billion due to the devastating fire that gutted garment products and machinery of its two buildings at Konabari in the Gazipur industrial belt near the capital on November 29.
Earlier on December 1, leaders of the country's apparel trade promotion bodies urged the government and other stakeholders, including banks and insurance companies, for help in rebuilding the units, where around 19,000 workers are employed.
The group is one of the largest and most compliant garment manufacturers in Bangladesh with well-known customers including American Eagle, Gap, Zara, Tommy Hilfiger, Kohl's, Sears, Abercrombie & Fitch, and Gymboree.