Garment owners to get financial lifeline for workers\\\' housing
FE Report | Wednesday, 12 November 2014
Apparel manufacturers now can secure cheaper loan from the central bank-managed housing fund to build dormitories for workers.
The interest rate for the loan is as low as 2.0 per cent.
Only members of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), having their own lands, will be entitled to the' Grihayan Tahbil' (housing fund) that was established to offer loans to non-government organisations.
A memorandum of understanding (MoU) was signed Tuesday between the Bangladesh Bank and BGMEA at an event held in the city.
BGMEA's vice president Reaz-Bin-Mahmood and Fund Adviser and Executive Director of Bangladesh Bank M Mahfuzur Rahman signed the agreement on behalf of their respective organisations.
BGMEA president Md Atiqul Islam presided over the programme attended by Finance minister AMA Muhith as the chief guest and BB governor Dr Atiur Rahman as the special guest.
"The housing situation across the country is not at a good shape," the minister said adding this initiative would help improve accommodation of about 20 million people who directly and indirectly are dependent on the garment sector.
The BB governor said the central bank has sought a Tk 2.0 billion allocation from the finance ministry to increase the fund size.
Mr Muhith pledged that the government would consider the central bank's request.
"The conditional loan will be disbursed to BGMEA or its member factories at 60:40 loan equity ratio," Mr Atiur Rahman said adding BGMEA will select the eligible members and issue guarantee for them.
"If any client fail to pay the loan, BGMEA will be obliged to repay the loan," he added.
Housing is one of the major problems for the garment workers who contribute in earning foreign currency and to the national economy, he said adding the move has been taken to ensure housing facility for them.
The BGMEA president sought the finance minister's intervention so that they can build dormitory at the khas land in Gazipur.
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