Give apparel makers six more months to repay loans | The Daily Star
12:00 AM, February 24, 2021 / LAST MODIFIED: 01:55 AM, February 24, 2021

Give apparel makers six more months to repay loans

Finance ministry asks BB

The finance ministry has asked the central bank to provide an additional grace period of six months to garment industries so they can repay the loans of a stimulus package unveiled to pay wages to workers.   

"We have received a letter from the ministry to this end," said a Bangladesh Bank official.

The government declared the stimulus package amounting to Tk 5,000 crore in March last year from its budgetary support in order to help the owners of readymade garment factories to pay wages to their workers.

The banking regulator initially fixed a six-month grace period as per instruction of the government, and there was no interest, but a 2 per cent service charge.

The BB later included another Tk 5,500 crore to the scheme by way of extending its stimulus package for large borrowers.

In April last year, the central bank initially declared a stimulus package worth Tk 30,000 for large borrowers in the industrial and service sectors.

The fund later was expanded to Tk 40,000 crore.

The interest on fund taken from the additional amount was fixed at 4 per cent as banks disbursed the money from their own sources.

The government and the central bank declared the stimulus package to help the RMG sector, which was hit hard by the pandemic-induced demand drop.

The initial facility of the grace period was scheduled to end in December last year.

"The RMG sector will enjoy the grace period until June if the central bank takes a decision positively to this end," the BB official said.

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