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

Pic: Shutterstock

Textiles | On 6th May 2021

China indefinitely suspends economic dialogue with Australia

The National Development and Reform Commission (NDRC) of China has...

Pic: Shutterstock

Retail | On 6th May 2021

Ireland announces new €5 million COVID-19 Online Retail Scheme

Ireland has launched a new round of the COVID-19 Online Retail Scheme ...

Pic: Shutterstock

Textiles | On 6th May 2021

Cotlook A index expected to drop by 6.18% by June: TexPro

The Cotlook A index is expected to decline by 6.18 per cent in June...

Interviews View All

Footwear Industry, Footwear Retailers

Footwear Industry
Footwear Retailers

Still struggling to mop up higher sales

Textile Industry, Head honchos

Textile Industry
Head honchos

Farmers who produce seeds earn 50 per cent more

Textile Industry, Head honchos

Textile Industry
Head honchos

Verticals like fast fashion won’t completely adopt personalisation on...

Barry Goodwin,

Barry Goodwin

UK based Amba Projex Ltd designs, manufactures, and installs industrial...

Nantas Montonati,

Nantas Montonati

The Riri Group is a one-stop supplier of metal accessories for the luxury...

Vikram Juneja,

Vikram Juneja

Jaquard is a training institute providing a highly specialised training...

Steve McCullough & Marco Weichert, Functional Fabric Fair & Design and Development GmbH Textile Consult respectively

Steve McCullough & Marco Weichert
Functional Fabric Fair & Design and Development GmbH Textile Consult respectively

Functional Fabric Fair is a trade-exclusive event showcasing the latest...

Shujaul Rehman, Garware Technical Fibres

Shujaul Rehman
Garware Technical Fibres

Garware Technical Fibres Ltd (formerly Garware-Wall Ropes Ltd) is a...

Thomas Ong P S, NanoTextile

Thomas Ong P S
NanoTextile

Malaysian company NanoTextile Sdn Bhd taps into the potentials of...

Ruma Devi, Gramin Vikas Evam Chetna Sansthan

Ruma Devi
Gramin Vikas Evam Chetna Sansthan

Ruma Devi is a jet-setting promoter of artisans who has empowered...

Niti Singhal, Twee In One

Niti Singhal
Twee In One

Best known for convertible clothing, Indian brand Twee In One by designer...

Sandeep Gonsalves & Sarah Gonsalves, Sarah & Sandeep

Sandeep Gonsalves & Sarah Gonsalves
Sarah & Sandeep

Established in 2012, Sarah & Sandeep is a luxury menswear label...

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

Leave your Comments


April 2021

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


Advanced Search