Cold storage operators seek time extension for loan rescheduling

FE REPORT
Cold storage operators have sought an extension for the rescheduling of their bank loans until December 2024, industry sources said.
The Bangladesh Cold Storage Association (BCSA) has recently wrote to the finance and commerce adviser to address this issue.
As per the BRPD Circular No. 47, issued in October 2023, the loan rescheduling facility for cold storage operators had been extended until November 30, 2023. But since then, the economy has slowed due to a combination of global economic uncertainties and domestic challenges.
As a result, many cold storage firms have faced financial hardships, with some unable to make their down payments, the sources said.
The BCSA had previously requested extensions for the loan rescheduling facility in December 2023 and again in April 2024, asking for extensions until March 2024 and June 2024 respectively. But to date, no new circular or order in this regard has been issued, leaving cold storage operators struggling.
Moreover, interest rates of scheduled banks have recently surged to 15 per cent, placing considerable strain on cold storage operators who are struggling to maintain economic viability amid rising costs, sources said.
Currently, the BCSA represents 353 cold storage facilities with a combined capacity of approximately 3.0 million tonnes.
BCSA President Mostafa Azad Chowdhury Babu said cold storage operators rent out space to farmers for potato storage, which facilitates both potato production and supply.
He expressed optimism that, with an extension of the loan rescheduling period, operators will be better positioned to manage their facilities effectively.
A storage owner emphasised the urgency of the situation, urging the government to take immediate steps to support the cold storage industry.
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