BGMEA makes 7-point proposal on bailout package for sick industries
Thursday, 1 April 2010
FE Report
The local apparel producers have come up with a seven-point proposal on the bailout package, announced for 270 sick industries, terming it 'unrealistic.'
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) put forward the seven-point proposal, so that the owners can avail themselves of the bailout package.
The finance ministry on Monday announced the package for 270 ready-made garment (RMG) units, remaining inoperative for many years, in order to eradicate the sick industry culture from the country.
The BGMEA said it is not possible for the owners to comply with the conditions, if they want to repay the loan within one year.
It said the conditions attached to the package are not realistic and the government should waive the 100 per cent interest that has already been charged.
On the other hand, the down-payment should range between Tk 0.2 million and Tk 0.5 depending on the size of loan and the repayment period should be five to 10 years, it added.
Banks should not charge any interest during the repayment period, if the units are not allowed to do business and the owners should be allowed to pay in half-yearly installment instead of quarterly.
The NBR should be instructed to withdraw all income tax and customs certificate cases against the companies and their bond and licences should be renewed, the BGMEA said.
The local apparel producers have come up with a seven-point proposal on the bailout package, announced for 270 sick industries, terming it 'unrealistic.'
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) put forward the seven-point proposal, so that the owners can avail themselves of the bailout package.
The finance ministry on Monday announced the package for 270 ready-made garment (RMG) units, remaining inoperative for many years, in order to eradicate the sick industry culture from the country.
The BGMEA said it is not possible for the owners to comply with the conditions, if they want to repay the loan within one year.
It said the conditions attached to the package are not realistic and the government should waive the 100 per cent interest that has already been charged.
On the other hand, the down-payment should range between Tk 0.2 million and Tk 0.5 depending on the size of loan and the repayment period should be five to 10 years, it added.
Banks should not charge any interest during the repayment period, if the units are not allowed to do business and the owners should be allowed to pay in half-yearly installment instead of quarterly.
The NBR should be instructed to withdraw all income tax and customs certificate cases against the companies and their bond and licences should be renewed, the BGMEA said.