Stimulus package for businesses hit by recession soon: Muhith
FE Report | Friday, 13 March 2009
The government will finalise its stimulus package by this month for the local export sectors that have been hit by global financial crisis, Finance Minister AMA Muhith said Thursday.
"We want to finalise the package by this month for supporting the sectors that are affected by the ongoing global economic recession," he told newsmen after a meeting with leaders of the Bangladesh Jute Association (BJA) at his ministry.
When asked about the nature of the incentive package, the finance minister said banks will have to cut their profit while the government will enhance its subsidy for the affected sectors.
"Some entrepreneurs producing yarn, leather products, frozen foods and jute goods have already sought support from the government for mitigating their losses caused due to the global financial crisis," Mr. Muhith said.
But the government has a limitation in respect of offering such relief, he said, adding all have to face the situation.
Responding to a query on why banks should cut their profits, the finance minister said they will require to do it for the sake of their business.
"We will sit shortly with banks in this regard," Mr. Muhith said.
The government has already formed to review the impact of the ongoing global recession on the country's economy, he said, adding the body is doing its job accordingly.
After a meeting with leaders of the local leather sector on last Sunday he said the government will come up with a special incentive package for the recession affected export sectors within a month.
About his meeting with the BJA delegation led by its president Md. Rezaul Karim, the finance minister said it has sought the government's intercession in exemption of interest on bank loans and settlement of other arrear dues.
"Jute is not a small sector," the minister said adding the country is still producing 5.0 million to 6.0 million bales of raw jute per annum, nearly 50 per cent of which are exported abroad.
The BJA leaders informed the finance minister that both the value and volume of raw-jute exports from Bangladesh declined significantly over the months following the global financial crisis.
The country earned only US$ 68.79 million by exporting 8,83,524 bales of raw jute during July-January period of the current fiscal. The earning was $ 151.51 million from exporting 2.87 million bales in whole of fiscal 2007-09, they mentioned.
Later, a delegation of Bangladesh Gray and Finished Fabrics Mills and Exporters Association (BGFFMEA), led by its president Md. Harun-ur-Rashid, made a call on the finance minister at the latter's office.
During the meeting, the BGFFMEA leaders raised various demands that include enhancement of cash support to 25 per cent from the existing 5.0 per cent, reduction of bank interest rate to a justifiable level and reviewing of the government decision on lifting the ban on import of Indian yarn through Benapole land port.
Mr. Muhith expressed his willingness to consider the demands of the BGFFMEA.
"We want to finalise the package by this month for supporting the sectors that are affected by the ongoing global economic recession," he told newsmen after a meeting with leaders of the Bangladesh Jute Association (BJA) at his ministry.
When asked about the nature of the incentive package, the finance minister said banks will have to cut their profit while the government will enhance its subsidy for the affected sectors.
"Some entrepreneurs producing yarn, leather products, frozen foods and jute goods have already sought support from the government for mitigating their losses caused due to the global financial crisis," Mr. Muhith said.
But the government has a limitation in respect of offering such relief, he said, adding all have to face the situation.
Responding to a query on why banks should cut their profits, the finance minister said they will require to do it for the sake of their business.
"We will sit shortly with banks in this regard," Mr. Muhith said.
The government has already formed to review the impact of the ongoing global recession on the country's economy, he said, adding the body is doing its job accordingly.
After a meeting with leaders of the local leather sector on last Sunday he said the government will come up with a special incentive package for the recession affected export sectors within a month.
About his meeting with the BJA delegation led by its president Md. Rezaul Karim, the finance minister said it has sought the government's intercession in exemption of interest on bank loans and settlement of other arrear dues.
"Jute is not a small sector," the minister said adding the country is still producing 5.0 million to 6.0 million bales of raw jute per annum, nearly 50 per cent of which are exported abroad.
The BJA leaders informed the finance minister that both the value and volume of raw-jute exports from Bangladesh declined significantly over the months following the global financial crisis.
The country earned only US$ 68.79 million by exporting 8,83,524 bales of raw jute during July-January period of the current fiscal. The earning was $ 151.51 million from exporting 2.87 million bales in whole of fiscal 2007-09, they mentioned.
Later, a delegation of Bangladesh Gray and Finished Fabrics Mills and Exporters Association (BGFFMEA), led by its president Md. Harun-ur-Rashid, made a call on the finance minister at the latter's office.
During the meeting, the BGFFMEA leaders raised various demands that include enhancement of cash support to 25 per cent from the existing 5.0 per cent, reduction of bank interest rate to a justifiable level and reviewing of the government decision on lifting the ban on import of Indian yarn through Benapole land port.
Mr. Muhith expressed his willingness to consider the demands of the BGFFMEA.