Govt approves $106m pvt sector foreign credit

The government Sunday approved US$ 106 million in private sector foreign credit to 13 sectors including cement, telecom, battery, textiles and handicraft.

The Board of Investment (BoI) scrutiny committee for private sector foreign borrowing cleared the borrowing of US$ 106.6 million foreign loan Sunday.

The 82nd meeting of the scrutiny committee was held at Bangladesh Bank (BB).

Bangladesh Bank governor Dr Atiur Rahman presided over the meeting, in which committee members including representatives of the Prime Minister's Office, Ministry of Finance, Ministry of Commerce, Ministry of Industries, Board of Investment and officials of the committee secretariat were present

The committee approved $20.0 million for Shah Cement Industries Limited, $45.0 million for Airtel Bangladesh Limited, $ 12.70 million for Samuda Chemical Complex Limited, $4.50 million for Premier Cement Mills Limited, $3.0 million for Rahimafroz Accumulators Ltd,  $ 5.0 million for genesis Fashions Ltd, $3.0 million for Karupannya Limited, $3.5 million for Envoy Textile Ltd, $2.5 million for Rose Dresses Ltd, $2.80 million for Plummy Fashions Limited and the rest of the amount for three other companies. The highest interest rate of the approved proposals is 6-month LIBOR+4.50 per cent.

The committee approved foreign loan worth $1821 million in fiscal year (FY) 2013, which was 43 per cent higher than FY 2012 (US$ 1040 million).

There has been a continuous growth in the inflow of foreign loans over the last five years, and this uptrend continues even today, a high official of the BB said.

Sources said more foreign financing proposals were in process and under close consideration for approval.