Reeling from a severe cash crunch amid global air travel restrictions owing to the coronavirus pandemic, Biman Bangladesh Airlines finally got the approval for a loan of Tk 1,000 crore from Sonali Bank.
The board of directors of the state-run bank gave the nod in its meeting on April 30 on condition that the national flag carrier will give it sovereign guarantee, MohibulHaque, senior secretary of Civil Aviation and Tourism Ministry, told The Daily Star today.
He also said that finance division of the Ministry of Finance has already given the sovereign guarantee to Sonali Bank on behalf of the national airliner.
Sajjadul Hassan, chairman, Board of Directors of Biman, said the bank board approved the loan last week after the national flag carrier gave a proposal seeking a loan of Tk 1,500 crore from it.
Biman sources said the national airliner got the loan under the prime minister's recently announced stimulus package for the coronavirus affected industries and the service sector.
Biman will use the money to meet expenses for permanent operation cost, loan installment to various banks and aircraft lessor and to pay the salaries of its several thousand employees, said Biman Managing Director and CEO M Mokabbir Hossain.