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 30th Mar 2020

PRC economy to quickly return to potential growth: PBOC

China's economy will swiftly return to its potential growth rate,...

Pic: Shutterstock

Apparel/Garments | On 30th Mar 2020

COVID FightBack: Malaysia takes steps to tackle impact

Malaysia will grant a six-month delay on most loan payments to ease...

Pic: Shutterstock

Retail | On 30th Mar 2020

NRF hails US House of Representatives consent to CARES Act

The National Retail Federation has welcomed the quick passage by the...

Interviews View All

Headhonchos, Textiles & allied industry

Headhonchos
Textiles & allied industry

Textiles industry is always in the forefront in accepting latest technology

Top executives, Textile industry

Top executives
Textile industry

Sustainable fashion is also ‘slow fashion’

Marazban F Velati, Sutlej Textiles & Industries limited

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Karen Lou,

Karen Lou

Australia-based Sunseeker has been creating swimwear since 1970. Sunseeker ...

Kuldeep Pareek,

Kuldeep Pareek

Italian company Schoch Reeds has been producing high-quality weaving reeds ...

Valter De Carli,

Valter De Carli

Savio Macchine Tessili is at the head of a group that holds a know-how of...

Karl Zelik, Vanderbilt University

Karl Zelik
Vanderbilt University

A team of engineers at the Vanderbilt University has designed a smart...

Madison Maxey, Loomia

Madison Maxey
Loomia

Loomia designs and manufactures soft circuit systems that can be produced...

Iago Castro Asensio, RCfil Distribuciones S.L.

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

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...

Sneha Arora, Label Sneha Arora

Sneha Arora
Label Sneha Arora

Sneha Arora, an alumnus of National Institute of Fashion Technology,...

Chandani Sahi, By Chandani

Chandani Sahi
By Chandani

By Chandani is a womenswear prêt couture brand with fusion silhouettes by...

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


March 2020

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


Advanced Search