Thirty four sick apparel factories would get interest waiver as the government decided a bailout package so the factories could pay back the principal amount of loans to the banks.
The factories have long been maintaining overdue loans and interests of over Tk5bn taken from 11 banks and financial institutions, said a senior official of the finance division. “The sick units will be entitled to exemption of interests against their loans.”
The banks included Sonali , Agani and eight private commercials banks.
The government has allocated a sum of money for paying the banks against interest. A proposal in this regard would soon be submitted to Finance Minister AMA Muhith for approval.
Bangladesh Bank’s latest data showed that 20 garment company owners took loans of Tk1.81bn in the last ten years from the
country’s largest state-owned bank, Sonali Bank, and the interest rate amounted to Tk1.17bn and total liabilities stood at Tk4.08bn.
These companies include – Fashion Next Limited, Appeal Fashion Ware, Chowdhury Associate Limited, Aba Sweater, Polar Sweater, B.P. Sweater, Kazi Fashion, Jasi Garment, Uash Sweater and Nobal Design and Dresses, among others.
Agrani Bank lent Tk107.3m to five garment companies and their total liabilities now stand at Tk187.6m. The companies include – Century Knitwear, MS Garment, Shaied Terrytowels and Shaied Tex Fashion.
The other companies who owe eight private banks are Pubali Bank client JR Fashion, ICB Islamic Bank client Niloy Fashion, Jamuna Bank client Hi- tex Export, AB Bank client Peninsula Dresses International, Uttara Bank limited client Eastern Garment, NCC Bank client’s Prosure Bastro Limited, two clients of EXIM Bank: Arizona Sweaters Limited and Jodihak Sweaters Limited and City Bank client SL Knitwear.
The Phoenix Finance clients are Abba Sweater Limited, Jodihak Sweater and Fashion Next.
President of Bangladesh Sick Industries Association, Chaudhury Muhammad Ishhaq, said the government should support the decades-old problems of the sick industries with banks and financial institutions.
He alleged that despite understanding the specific definition of a sick industry, the financial institutions are treating them as loan defaulters.