Home / Knowledge / News / Textiles / Banks told to follow debt recovery guidelines for jute sector
Banks told to follow debt recovery guidelines for jute sector
28
Apr '10
The Bangladesh Bank (BB) has directed commercial banks to implement an official decision that lays down specific conditions for the recovery of overdue credit from private jute mill owners so that they can continue with the manufacturing process, said sources.

Under the conditions, the arrears on loans along with calculated till June 30, 2009 that the private jute mills owe to banks, be kept in a 'block account' for 30 months, after which the total outstanding be recovered in a period of 10 years, by charging interest rate of 8.0 per cent.

According to the official sources, the Central bank's circular came after the Finance Ministry's recent directions in this regards.

Earlier, the Textile and Jute Minister, Abdul Latif Siddiqui in a meeting with the bankers had decided to recover the overdue debts from the jute mill owners in accordance with the aforementioned guidelines and then subsequently the Ministry called for Finance Ministry's interference for its due implementation.

The overdue amount of loans that the BJMC and private jute mill owners owe to almost 24 commercial banks, as on June 30, 2009, totals to around Tk 10 billion.

According to experts, the private jute mill owners have been experiencing huge financial crisis which has made it difficult for them to acquire raw jute, as the fibre prices have increased exorbitantly.

Fibre2fashion News Desk - India


Must ReadView All

Textiles | On 22nd Jun 2017

Zund unveils cradle feeder roll-feed system for fabrics

Zund Systemtechnik AG, Switzerland’s textile machinery firm that...

Textiles | On 22nd Jun 2017

Hpfabrics opening production facility in Forsyth County

Hpfabrics, manufacturer of raw fabrics, is opening a new production...

Courtesy: Napapijri

Apparel/Garments | On 22nd Jun 2017

Napapijri's Superlight Parka is free of fur and down

Napapijri has introduced the new Superlight Parka, a new lightweight...

Interviews View All

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Kai Poehler
Voith Paper GmbH & Co. KG

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

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Prathyusha Garimella
Prathyusha Garimella

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

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

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

news category


Related Categories:
June 2017

June 2017

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

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search