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Bangladesh jute industry to get bank capital

An advisory committee of the Ministry of Textiles and jute has urged the Bangladesh Bank (BB) to ensure fresh working capital for private jute millers, keeping their outstanding loans along with five years’ interest in a blocked account. The advisory committee also urged banks to set the cut-off date on June 30, 2014, instead of December 31, 2013, in case of blocked accounts.  

The committee took the decision in a bid to salvage the ailing jute industry facing liquidity crisis that put most of the mills in dire straits. The situation has become aggravated as export earnings from jute and jute goods have fallen due to decline in overseas demand. To overcome the crisis, the meeting highlighted the urgency for refinancing jute millers and urged the BB to introduce the block account facilities to millers to keep the sector alive.

Millers have urged the government to provide blocked account facilities to private jute mills and allow fresh loans. The finance ministry also advised the BB to provide fresh loans to private jute millers. It directed the central bank to keep their outstanding loans along with their five years’ interest, taken until June 30, 2011, in a blocked account at 8.0 per cent interest with10 years’ re-payment facilities.

 
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