Bangladesh Garment Manufacturers and Exporters Association (BGMEA) today hailed the government for taking decision on repayment of loans by 270 sick garments industries, reports BSS.

Expressing gratitude to the government, especially to the finance ministry, BGMEA President Abdus Salam Murshedy said such a decision taken by the government proves that it is an industry- friendly and labor-friendly government, said a press release.

Abdus Salam Murshedy said BGMEA identified these industries as sick and the commerce ministry also made recommendations about those.

Expressing reaction over the decision of the finance ministry through a order issued on August 17 this year, he said, with this order the long cherished expectation of BMGEA and garments workers have been fulfilled.

As per the circular, sick industries would get extra time for repaying their outstanding loans.
The units for their loan up to Taka five crore would be able to repay the loans in five years from the date of the order, while for loan more than Taka five crore sick units would get ten years time.

As per the order, the un-imposed interests and interests in suspense accounts would be waived fully and cost of fund would be relaxed.

The mail loan and cost of conducting cases would not be waived, the order said.
Principal loan and deposited interests would be considered as the liabilities of the sick industries.

The rate of interest in this case would be eight per cent, of which the borrowers would pay five per cent interest and the government would subsidize three per cent and pay to the lending banks.

BGMEA chief said with this order, 270 sick garments industries would find a decent exit from their loan burden.