The government has extended the loan repayment period by five years for 109 sick industries, officials said. The selected industries of the non-textile sector having loan worth not more than Tk 50,00,000 to the state-owned commercial and specialised banks will enjoy one moratorium before clearing the liability in quarterly instalments in next four years, the officials said.
The Bank and Financial Institution Division has recently issued a circular in this connection and asked Bangladesh Bank and the state-owned commercial and specialised banks — Sonali, Janata, Rupali, Agrani, Rajshahi Krishi Unnayan Bank, Bangladesh Development Bank — and Investment Corporation of Bangladesh to implement the new guideline.
According to the circular, the banks will realise only principle amount at a rate of eight per cent interest. They have been asked not to realise any other surcharges.
The selected sick industries have been asked to give 2 per cent down payment once the banks start to waive the surcharges. They are also asked to file applications to avail the opportunity in two months.
The banks have been asked to keep the ongoing legal activities against the industries suspended.
The officials said similar circular might be issued for the sick industries of the textile sector soon. They said 346 industrial units in the private sector were identified as sick in October.
They pointed out that the offers were most generous to the sick industry entrepreneurs who had been enjoying such government largesse since 1998.
There is no specific data about the amount which is needed to be waived by banks as interests against loans, the officials said.
A previous assessment by the Banking Division found that banks, mainly the state-owned ones, needed to waive interest amounting to around Tk 850 crore of some 273 industries, identified as sick industries.
On September 17, industries minister Dilip Barua told parliament that a taskforce had already scrutinised the applications and finalised 264 and 80 industries as sick industries in two phases.
They were selected from around 700 industries falling sick in the country — 270 industries in the RMG sector, 100 in the specialised textile mill sector and 80 in the tannery sector.
There were some 108 industries that became sick, mostly textile spinning mills, when the taskforce was formed way back in 1998 to help them.
Finance minister AMA Muhith had stated that the industries remaining sick for more than 15 years had no right to exist. He had criticised the Bangladesh Sick Industry Association saying such association was a disgrace.
The association has long been demanding for amending the Artha Rin Adalat, a court dealing loan disputes, withdrawal of cases under this law and bailout of the sick industries. They want new laws for dealing with the sick industries.
-With New Age input
