Home / Knowledge / News / Apparel/Garments / Bangladesh minister moots specialised bank for RMG sector
Bangladesh minister moots specialised bank for RMG sector
12
Aug '15
AHM Mustafa Kamal
AHM Mustafa Kamal
Bangladesh planning minister AHM Mustafa Kamal has suggested establishment of a specialised bank for the readymade garment (RMG) sector on the lines of Krishi Bank.
 
The minister said he would try his best to set up a designated bank for the country's garment sector while participating in a discussion on financing apparel growth last week in Chittagong.
 
Kamal said achieving the $50 billion export target by 2021 by the garment industry is possible but difficult. Setting up a specialised bank for the garment sector would ensure low-cost financing and attract more investment, the minister said.
 
Agreeing with the minister, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Atiqul Islam said setting up such a bank would help the garment sector meet its needs of low-cost financing for achieving higher compliance and productivity and remain competitive in the international market.
 
Islam said the Japan International Cooperation Agency (JICA) offers loan at 0.01 per cent interest rate, but the final interest rate at the disbursement stage goes up to 10 per cent, as the banking division of the finance ministry charges 4 per cent, Bangladesh Bank 1 per cent, and another 5 per cent is charged by commercial banks for processing the loan.
 
Small and medium apparel enterprises are finding it difficult to relocate their factories from shared buildings to the purpose-made buildings due to shortage of funds, while buyers are showing less interest in placing orders with the factories housed in shared buildings, Islam said.
 
At present, 60 per cent of RMG factories in Bangladesh are housed in purpose-built buildings, while the rest are functioning from shared buildings, according to BGMEA. (RKS)
 

Fibre2Fashion News Desk – India

Must ReadView All

Courtesy: Li & Fung

Textiles | On 29th Mar 2017

Li & Fung introduces new 3-year plan 2017-2019

Li & Fung Limited has outlined its next Three-Year Plan (2017-2019)...

Courtesy: Carrington

Apparel/Garments | On 29th Mar 2017

Carrington Workwear signs JV with TMG Textiles

Carrington Workwear, one of the largest producers of workwear fabrics ...

Apparel/Garments | On 29th Mar 2017

Jabong launches Aeropostale on its platform

Jabong has added leading American high-street fashionwear brand,...

Interviews View All

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search