Banks to raise credit limit for private jute mill owners

16 Jul '10

2 min read

Banks have decided to commit for raising the cash credit limit, for privately-owned jute mills after a new appraisal of their assets. The officials believe this move would provide a boost to the struggling jute industry.

According to officials, if the assets are reassessed, it would further enhance the credit line to the private jute millers who are in immense need of cash for purchasing raw jute.

This assurance on the part of banks came during a recent meet conducted by the Jute Advisory Council, which was presided by Minister of Textile and Jute, Abdul Latif Siddique.

Minister urged the commercial banks to enhance the working capital support to private jute mill owners, so as to aid them with timely procurement of raw-jute.

According to sources, banks, at the meet were urged to allow a 30-month debt cessation period to the private jute mill owners.

The minister also informed during the meet, regarding government's decision to waive off the outstanding loans of state factories, run by Bangladesh Jute Mills Corporation (BJMC), totalling to Tk 28 billion.

Furthermore, the meeting also recommended relinquishing loans of private as also publicly owned jute mills that have procured loans from the Jute Sector Adjustment Credit, financed by the World Bank. The lending programme was started by the Bank in mid-1990s to ameliorate the jute sector in the country.

The Minister directed the private jute mill owners to launch raw jute procurement centres in adherence to the BJMC model. BJMC holds over 100 raw-jute procurement centres, spread throughout the country.

Fibre2Fashion News Desk - India

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