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Loan Exemption for Bangladesh Textile Mills Corporation |
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October 4, 2000
Dhaka (UNB) – Bangladesh Textile Mills Corporation was yesterday relieved of about Tk 260-crore debt hangover against its 10 units privatised way back in 1982-83. The amount constituting loans and interest remained in the BTMC account until today’s transfer to the accounts of the respective mills under separate tripartite agreements. The loan waiver covered the period until June 30, 2000 from the time the mills remained state-owned, as per the agreements BTMC signed with respective banks and mill authorities at the Textiles Ministry. State Minister for Textiles AKM Zahangir Hossain, Textile Secretary Helal Uddin Khan, BTMC Chairman AFMS Zaman, Bangladesh Textile Mills Association (BTMA) president Salman F Rahman and managing directors of the mills were present. The agreements were signed as per the decision of a recent cabinet meeting. In accordance with the agreements, the mill authorities will pay the banks an amount of Tk 27.15 crore – capital Tk 13.47 crore and interest Tk 13.68 crore – in 14 installments over 7 years. The banks –- Sonali, Agrani, Rupali and Pubali -- exempted the mills of a cumulative interest amount of about Tk 232.85 crore. Besides loan exemption, the mills will now be entitled to avail all facilities from the banks, including financial support for modernisation of the mills, to run operations that would provide a fresh employment opportunity for about 8,000 people. The textile units are Chittagong Textile Mills Ltd, Ibrahim Cotton Mills, Joba Textile Mills, Chand Textile, Habibur Rahman Textile, Moynamati Textile, Alhaj Textile, Goalondo Textile, Raj Textile and Sirajganj Textile Mills. Seven of the units remained in operation while three closed, the signing ceremony was informed. BTMC offloaded the shares of its 36 units to local shareholders under privatisation policy 1982, of which 20 remained liable to the banks, ministry sources said. Of the total 20 units, 10 wanted to avail the opportunity while cases between the government and Pubali bank remained pending against 4 units and 6 have no response. Of the 10 industrial units that got the waiver, Habibur Rahman Textile and Goalondo Textile required no agreement signing as they have negative liabilities with the banks. |