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

President Donald Trump; Courtesy: White House

Textiles | On 23rd Jan 2017

US textile industry eager to work with President Trump

The US textile industry is eager to work with President Donald Trump...

Textiles | On 23rd Jan 2017

LyondellBasel expands Texas plant ethylene capacity

US based producer of petrochemicals and speciality chemicals...

Textiles | On 23rd Jan 2017

China’s cotton imports down 39% in 2016

China’s total cotton imports declined by 39.1 per cent to ...tons in...

Interviews View All

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Robert Brunner
Devereux

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

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

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
January 2017

January 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