Govt declares bailout package for 270 RMG units


The government has announced a bailout package for 270 ready-made garment (RMG) industries, inoperative for many years, in order to eradicate sick industry culture from the country.

The industries will be given cent per cent interest waiver with no down payment facility, if they repay the amount within one year. If all the industries avail the facility, a total amount of Tk 10 billion bank interest will be waived.

The industries will have to make a down payment, if the repayment period is two to five years, and the cost of fund will also be collected from them.

A total of eight per cent interest will be collected, and out of the total interest, five per cent will be borne by the borrowers and the government will provide three per cent subsidy.

The finance ministry Monday issued a circular, asking those industries to contact with their respective banks within 30 days to avail the facility.

"The government needs to spend Tk 160 million as interest subsidy per year," said a finance ministry official.

The sick industries, identified by BGMEA and recommended by commerce ministry, will have to repay all the legal costs to the banks, and no interest will be counted during the repayment period, he added.

The finance minister had repeatedly said the country should get rid of sick industry culture in the free market economy.
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