Beximco moves BB for 12-yr loan restructuring

Beximco Group, in a loan restructuring proposal to the central bank, is seeking softer terms such as longer time and lower interest rate, to repay more than Tk 50 billion (Tk 5,000 crore) owed by its Textile and Garment Division to several local banks. Bangladesh Bank has sought opinions from 7 banks, four state-owned and three private banks, on the Beximco proposal. Beximco Group Vice Chairman Salman F Rahman in the August 5 letter to the governor also suggested that there be a temporary suspension of 2-and-half-year on mandatory repayments. It proposed that the banks charge a 10 per cent interest rate – rather than usual 18 – on the loan. Rahman argued that the Group had repaid over Tk 8b (800 cr) in the last three years, draining its working capital. He based his proposal on an assessment done by a prominent audit firm, the letter says. The central bank on Aug 19 asked four nationalised and three private banks for their take on the proposal including a 12-year restructuring period. But a BB source said there had been no response until Thursday from any of Sonali, Rupali, Agrani, Janata, National, Exim and AB banks, according to bdnews24.com.