BB mulls stimulus for recession-hit industries
April 6, 2010
Bangladesh Bank may give industries affected by the global economic meltdown an opportunity to reschedule their loans without any down payment under the recession benefits the government is considering for these industries.Presently rescheduling requires 10-50 percent down payment on the overdue loan.
If the opportunity for rescheduling loans on easy terms is introduced, rules of the Central Credit Information Bureau will also not have to be relaxed.
Export-oriented industries like the ready-made garment, frozen food and jute sectors have demanded cash incentives and benefits regarding utility bills in the face of the global recession.
Sources in the finance ministry and the central bank said they are primarily going to take steps so that affected industries do not face any difficulty in getting loan.
Bangladesh Bank will start talks very soon with commercial banks regarding rescheduling of loans without down payment. Only affected industries will be eligible for the benefit, getting which will require a permission of Bangladesh Bank.
A Bangladesh Bank official said if the benefit is given, a major obstacle to these industries’ getting funds would be removed.
The official said the central bank cannot impose on the commercial banks the demands of these industries for benefits including loan at low interest. He, however, said they would continuously persuade the commercial banks about the matter but it cannot be given under a package deal.
On tax related facilities demanded by the affected industries, an official of the National Board of Revenue said chances are slim that the export-oriented industries, which already enjoy different tax related facilities, will be given fresh offers.
On the demand for cash incentives, the finance minister has already said they have very limited scope for this. A source at the ministry said the government has already released Tk 888 crore in the current fiscal year’s budget.
As of February 2009, Tk 243 crore has fallen overdue. Under the recession package the finance minister approved the overdue amount and it will be released soon.
Finance ministry sources said maybe no additional incentives will be given in the current fiscal year.
Sources said several departments of the finance ministry and other ministries concerned are examining the exporters’ demands. They may finalise by next week what benefits to give them.
The commerce minister yesterday told a delegation of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) that they will be informed about the benefits they will be given within a day or two.
However, the finance ministry sources said according to their analysis the impact of the world recession was not much in the country’s export-oriented industries. That is why they are considering loan rescheduling as a major benefit in the benefit package to be announced.
Source: http://www.thedailystar.net
Comments
Got something to say?
You must be logged in to post a comment.