2nd stimulus package for export sector dev comes into effect
Thursday, 10 June 2010
Siddique Islam
The second stimulus package for development of the export sector came into effect Tuesday - more than six months after the government announced financial and policy supports for exporters.
The central bank issued a circular in this connection and asked the commercial banks to take necessary measures to implement steps adopted in the package for the development of the export-oriented sector, particularly textile.
"We've issued the circular in line with the finance ministry's advice," a senior official of the Bangladesh Bank (BB) told the FE, adding that the exporters would be benefited from the stimulus package.
"We had to take time for fixation of criteria and procedures on providing financial assistance," the BB official said when asked about delay in issuing the circular.
On November 25 last year, the government announced a series of additional fiscal and policy stimulus packages worth over Tk 10 billion for the export sector to offset bad impacts of global recession from the domestic economy.
President of Bangladesh Textile Mills Association (BTMA) Abdul Hai Sarker told the FE that the exporters might be benefited more if the circular was issued earlier.
Under the package, exporters will receive 5.0 per cent cash incentives for new export destinations for three years while all export destinations, except the USA, EU and Canada, will be considered new ones.
The exporters will get 5.0 per cent cash incentives in the first year, 4.0 per cent in the second year and 2.0 per cent in the third and final year.
The second stimulus package for development of the export sector came into effect Tuesday - more than six months after the government announced financial and policy supports for exporters.
The central bank issued a circular in this connection and asked the commercial banks to take necessary measures to implement steps adopted in the package for the development of the export-oriented sector, particularly textile.
"We've issued the circular in line with the finance ministry's advice," a senior official of the Bangladesh Bank (BB) told the FE, adding that the exporters would be benefited from the stimulus package.
"We had to take time for fixation of criteria and procedures on providing financial assistance," the BB official said when asked about delay in issuing the circular.
On November 25 last year, the government announced a series of additional fiscal and policy stimulus packages worth over Tk 10 billion for the export sector to offset bad impacts of global recession from the domestic economy.
President of Bangladesh Textile Mills Association (BTMA) Abdul Hai Sarker told the FE that the exporters might be benefited more if the circular was issued earlier.
Under the package, exporters will receive 5.0 per cent cash incentives for new export destinations for three years while all export destinations, except the USA, EU and Canada, will be considered new ones.
The exporters will get 5.0 per cent cash incentives in the first year, 4.0 per cent in the second year and 2.0 per cent in the third and final year.