Frozen food exporters want refinance support
Thursday, 23 April 2009
FE Report
Bangladesh Frozen Foods Exporters Association (BFFEA) Wednesday urged the government to refinance them at least 40 per cent of their working capital loans to face the global economic downturn.
BFFEA leaders said the refinancing must be interest free and would repayable in quarterly installments over five years with provision of additional two years as moratorium.
The country's frozen food exporters said this at a press conference held at a city hotel.
"We have incurred losses of around 50 per cent of our working capital loans due to the global recession. For this, we need at least 40 per cent refinancing of our working capital loans under 'interest free block loan' for a period of five years," said Musa Mea, BFFEA president.
Mr Musa also said previous governments refinanced frozen food factories during their crisis period adding: "We have repaid 100 per cent of such loan in the past."
He also said the refinancing facility is desperately required as at least 10 frozen foods factories have closed down due to lack of funds in recent period.
"Our estimate for refinancing in the sector is worth Tk 4.0 billion to raise shrimp production and other related expenses. This will help the frozen food plants to survive and at the same time raise the country's frozen food export," Mr Musa added.
Leaders of BFFEA also urged the government to provide fiscal benefit based on the actual prices instead of fixed weight as determined earlier.
The government in its stimulus package programme proposed a 12.50 per cent cash incentive for the frozen foods against 10 per cent to revamp the sector amid global crisis.
BFFEA leaders said they face discriminatory attitudes between state owned and private commercial banks when loans or benefits are disbursed urging the government to give a directive for a maintaining homogenous attitude.
Country's frozen foods exporters also said the sector could fetch at least Tk 1.0 billion by 2012 if the government provides financial and policy supports to the sector.
There are 145 fish processing plants in the country and they exported US$ 534 million in 2007-08.
Bangladesh Frozen Foods Exporters Association (BFFEA) Wednesday urged the government to refinance them at least 40 per cent of their working capital loans to face the global economic downturn.
BFFEA leaders said the refinancing must be interest free and would repayable in quarterly installments over five years with provision of additional two years as moratorium.
The country's frozen food exporters said this at a press conference held at a city hotel.
"We have incurred losses of around 50 per cent of our working capital loans due to the global recession. For this, we need at least 40 per cent refinancing of our working capital loans under 'interest free block loan' for a period of five years," said Musa Mea, BFFEA president.
Mr Musa also said previous governments refinanced frozen food factories during their crisis period adding: "We have repaid 100 per cent of such loan in the past."
He also said the refinancing facility is desperately required as at least 10 frozen foods factories have closed down due to lack of funds in recent period.
"Our estimate for refinancing in the sector is worth Tk 4.0 billion to raise shrimp production and other related expenses. This will help the frozen food plants to survive and at the same time raise the country's frozen food export," Mr Musa added.
Leaders of BFFEA also urged the government to provide fiscal benefit based on the actual prices instead of fixed weight as determined earlier.
The government in its stimulus package programme proposed a 12.50 per cent cash incentive for the frozen foods against 10 per cent to revamp the sector amid global crisis.
BFFEA leaders said they face discriminatory attitudes between state owned and private commercial banks when loans or benefits are disbursed urging the government to give a directive for a maintaining homogenous attitude.
Country's frozen foods exporters also said the sector could fetch at least Tk 1.0 billion by 2012 if the government provides financial and policy supports to the sector.
There are 145 fish processing plants in the country and they exported US$ 534 million in 2007-08.