Re-scheduling of bank loans of 270 sick garment factories soon
FE Report | Wednesday, 13 August 2008
The re-scheduling of bank loans of 270 sick garment factories is likely to take place soon as the Ministry of Commerce (MoC) Tuesday issued directives to the relevant departments for taking necessary steps to expedite the process.
The garment units have been sick for around a decade and it is widely believed that the financial conditions of the factories deteriorated when a series of strikes were observed in Chittagong in the late 1990s.
The MoC gave the directives to the concerned departments on the day after a follow-up meeting with the leaders of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Finance Division, Export Promotion Bureau (EPB) and the National Board of Revenue (NBR).
The meeting took place at the MoC conference room on the day with Commerce Adviser Hossain Zillur Rahman in the chair.
According to the decisions taken by the MoC, the sick industries will have to repay the principal amount of bank loans in 20 equal installments in 10 years.
The MoC took five decisions for expediting the procedures relating to re-scheduling of bank loans. The BGMEA will submit a list of the sick garment industries to Finance Division, which in turn will issue a separate circular within a fortnight relaxing the conditions for Cost of Fund Recovery.
The Bangladesh Bank will take necessary steps after receiving the circular from MoF.
The MoC will also issue letters to the ministries of Finance and Law for early disposal of cases that are pending with the 'Artho Rin Adalot'.
Besides, the MoC will also issue a letter to the NBR requesting them to waive unrealised income tax against the sick industries and their owners.
Anwar Alam Chowdhury Parvez, BGMEA president, told the FE that the decision taken by the government will help create employment.
"The owners of the sick industries have been suffering for long. We think the government's move for re-scheduling bank loans will be treated as a milestone for the sector."
The garment units have been sick for around a decade and it is widely believed that the financial conditions of the factories deteriorated when a series of strikes were observed in Chittagong in the late 1990s.
The MoC gave the directives to the concerned departments on the day after a follow-up meeting with the leaders of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Finance Division, Export Promotion Bureau (EPB) and the National Board of Revenue (NBR).
The meeting took place at the MoC conference room on the day with Commerce Adviser Hossain Zillur Rahman in the chair.
According to the decisions taken by the MoC, the sick industries will have to repay the principal amount of bank loans in 20 equal installments in 10 years.
The MoC took five decisions for expediting the procedures relating to re-scheduling of bank loans. The BGMEA will submit a list of the sick garment industries to Finance Division, which in turn will issue a separate circular within a fortnight relaxing the conditions for Cost of Fund Recovery.
The Bangladesh Bank will take necessary steps after receiving the circular from MoF.
The MoC will also issue letters to the ministries of Finance and Law for early disposal of cases that are pending with the 'Artho Rin Adalot'.
Besides, the MoC will also issue a letter to the NBR requesting them to waive unrealised income tax against the sick industries and their owners.
Anwar Alam Chowdhury Parvez, BGMEA president, told the FE that the decision taken by the government will help create employment.
"The owners of the sick industries have been suffering for long. We think the government's move for re-scheduling bank loans will be treated as a milestone for the sector."