Govt mulls waiving of Tk 28.43b debt of BJMC

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FE Report
The government mulls waiving of a Tk 28.43-billion outstanding debt of the state-run Bangladesh Jute Mills Corporation (BJMC) in a bid to give its ailing units a new lease of life.
The Finance Minister AMA Muhith recently expressed the government's willingness to bail out the BJMC mills from its debt liabilities.
"During a recent meeting, the finance minister said he will consider waiving the entire loan with interest amounting to Tk 28.43 billion that the BJMC mills owe to government and banking system," Textile and Jute Minister Abdul Latif Siddique told a recent meeting of Jute Advisory Committee.
Mr. Abdul Latif also informed the meeting that finance minister had hinted at providing incentive package to the 'genuine' mills under the Bangladesh Jute Mills Association (BJMA) and Bangladesh Jute Spinners Association (BJSA).
The Jute Advisory Committee at its meeting made some recommendations including measure to keep the raw-jute prices at reasonable levels, ensuring product diversification of jute goods and necessary steps by banks concerned for re-valuation of security/mortgage property of jute mills for enhancement of their credit limit.
Textile and jute minister, however, informed the meeting that a separate meeting would be convened to discuss the repayment of loan, which was received by private and BJMC mills under a World Bank (WB)-financed project 'Jute Sector Adjustment Credit (JSAC).'
The meeting also discussed the issues relating to implementation of the recent official decision on providing of a 30-month moratorium facility to private jute millers and recovery of their outstanding loans in 10 years at 8.0 per cent rate of interest.
Senior government officials, top executives of different commercial banks and representatives of private-sector jute mills were present at the meeting.