Beximco proposed to keep loan of 235.57b from Janata Bank as an interest-free block
It for 10 years to clear debts and 2 years to repay the loan
The company has sought Tk 600 million to pay salary-allowances of the employees for the month of October
BEXIMCO has asked for further Tk 7 billion as loan facility
Discontent spread in several factories of the BEXIMCO as the company failed to pay its workers following the fall of the Awami League government. There were reports of vandalism at several factories. Of the company’s Tk 235.57 billion loan to the Janata Bank, Tk 180 billion is defaulted now.
Besides, the group is not bringing the export income of Tk 11 billion to the country. BEXIMCO group vice chairman Salman F Rahman was the private industries and investment affairs adviser of former prime minister Sheikh Hasina. He is in prison now.
The workers of the company have taken to the street again demanding their due salary and allowances. At such a time, the ‘committee on profiling companies under crisis’, formed under the Department of Inspection for Factories and Establishments, is holding meetings and discussions on the future of the group. It recommended fresh loan assistance for the company to clear the salary and allowances of the employees and workers. Of the three proposals placed by the BEXIMCO, only this one was recommended. Besides, it has been recommended that the entire profit of the company be used for the repayments of its loan from the Janata Bank.
BEXIMCO proposals
Following the regime change, the BEXIMCO Group submitted a proposal to the Department of Inspection for Factories and Establishments. In the first proposal, the group requested to keep the loan of 235.57 billion from the Janata Bank as an interest free block. Besides, it asked for time to repay the loans and debts, 10 years for clearing the debts and two years for the repayment of loans.
The company also sought Tk 600 million as loan within the next Tuesday to clear the salary allowances of its workers and employees for the month of October. Besides, the group also asked for a further loan facility of Tk 7 billion. The group has shown interest to mortgage its properties (land and shares) worth Tk 6.83 billion for this.
In the second proposal, the group mentioned selling BEXIMCO properties for money, getting financed by the other organisations under the group and being financed privately by the sponsors.
The third proposal was about dissolving the company. It says the company needs to repay a loan of Tk 244.84 billion before getting dissolved. Of this, Tk 5.59 billion is needed for clearing the salary-allowances of the workers. There is no other way than selling the company to clear this debt.
BEXIMCO also said the company is a source of income for 40,000 employees and workers. Therefore, it does not want to close down or sell the company.
Committee recommendations
In response to the proposals of the BEXIMCO, the committee on profiling the companies in crisis recommended keeping the company running considering people working in the factories of this group, its export income and recovery of the outstanding debts of the company.
At the same time, the committee also recommended transferring the company’s loan of Tk 235.57 billion to an interest-free block to keep the company running for the repayment of the loan.
The committee said the company could be provided fresh export loans of Tk 6 billion (funded) and Tk 4 billion (non-funded) against its proposal to mortgage properties worth nearly Tk 6.83 billion. If the loan is provided, then a condition can be imposed that the company can spend money from the granted export loan of Tk 6 billion only for paying its employees and workers and to cover the operational expenses. Besides, the profit earned by the company can be entirely used for the repayment of its debt to the Janata Bank.
What does the Janata Bank say?
Some Janata Bank officials are saying the bank can provide a maximum of Tk 14.28 billion as loan to different groups. However, the BEXIMCO group was provided 16 times more, which defies all the rules and provisions of the Bank Company Act and the memorandum of understanding signed with the central bank. Already, some Tk 180 billion has been defaulted. Besides, BEXIMCO’s export income of Tk 11 billion is yet to be recovered. The inflow of income has halved following the fall of the government.
Meanwhile, the Janata Bank does not have the capacity to provide any loan at the moment. Therefore, it has no interest to provide any fresh loan to the group. They suggest seeking loans from government banks for the salary and allowances of the employees and workers of the BEXIMCO group.
However, there has been no official statement regarding this from the Janata Bank as yet. This correspondent tried to reach Janata Bank managing director Mojibur Rahman over the phone several times, but he didn’t respond.
*This report appeared on the online version of Prothom Alo and has been rewritten in English by Ashish Basu