BB asks exporters to use for loans from stimulus package immediately
Export-oriented industries will have to make an application for loans immediately if they would like to get funds from the Tk 5,000 crore stimulus package to pay wages to workers, said the central bank yesterday since it published terms and conditions.
The industries must submit the application for the loan to their respective banks as the central bank has asked lenders to place loan requirement by April 20.
The owners of the export-oriented industries, which is allowed to benefit from the loans, must repay the fund within two years, or else they'll be regarded as defaulters, said the BB in a notice.
The BB issued the notice as per instructions of the finance ministry for disbursement of the stimulus package targeted at helping exporters tide over the financial fallout of the global coronavirus pandemic.
The interest-free loan, which is used to pay wages to the employees of the professional units, will carry 2 % service charge and includes a repayment period of 2 yrs, including a grace period for six months from July to December this year.
Exporters must repay the loans in 18 monthly instalments from January 2021 to June 2022. The central bank will realise the amount by deducting funds from the lenders' current account with the BB.
If the borrowers fail to pay back the loans promptly, they will face 2 per cent penal interest.
Exporters meet the criteria to take the loans to pay wages for 90 days from April to June.
The BB will deposit the funds with the banks in three phases over the next 90 days. The funds will be paid into the banks' accounts on the last working day of the month, in line with the central bank notice.
Exporters are certain to get loans equivalent to the average wage amounts of three months from December to February.
As per the guideline, factory owners would need to submit the income sheets of personnel from December to February of 2019, the set of employees and their banking or mobile banking accounts to banks.
After the verification is complete, banks will disburse the salaries to the workers' mobile banking or bank accounts. This implies no fund will get to the account of the factory owners.
Factories that export at least 80 per cent of their products meet the criteria for the loans. Active factories that paid salaries and wages to workers from December to February would also be looked at.
The exporters will have to obtain recognition from their respective trade body to take pleasure from the loans. For instance, a readymade garment factory will need to take the letter from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the letter must be signed by the president and the general secretary, the central bank explained.
The government has produce the rescue package as the export sectors have already been reeling from the impact of the global coronavirus pandemic.
As of yesterday, $3 billion worth of garment orders were cancelled by international retailers and brands, according to data published by the BGMEA.
