Bangladesh's sluggish garment industry will get bank help

The Bangladeshi government recently announced a policy that will help poorly-operated apparel factories tide over difficulties.

Shafiqul Islam Patwary, head of the banking department, revealed that they have approved an exit policy and agreed to write off 270 companies that have not yet repaid in the near future.

Regarding the borrower, if they want to cancel the **, they must apply to the bank within two months after the order is issued. In addition, non-repayable units with less than 50 million taka must repay the same amount of ** within 5 years, and units that have outstanding ** over 50 million taka must repay the same amount within 10 years* *.

According to a recent notice, the official stated that the borrower will receive a one-year extension of reimbursement, and the bank will calculate the borrower’s debt after adding the interest to the principal.

Interest, not part of the bank's income, will be waived, but the principal and legal fees will not be waived. In addition, banks are authorized to determine the cost of their own funds.

In addition, bank officials pointed out that borrowers must pay instalments on a quarterly basis. If they do not pay instalments four times in a row, the incentives provided to them will be withdrawn.