Export-oriented industries to get loans for workers’ wages
Bangladesh Bank on Thursday night declared guidelines regarding a Tk 50 million fund to enable export-oriented industries which are in operation, to pay workers’ wages.
The guidelines provide details about which industries will be eligible for these loans. The loans will be interest-free and given to factories with at least 80 per cent export-oriented production.
According to the central bank’s guidelines, only the factories which have regularly paid the workers’ wages last December, January and February will be identified as being in operation. Other than paying the regular wages, these establishments will also have to be involved in export.
Bangladesh Bank will not take interest on these loans, but the banks will be able to impose a 2 per cent charge
The banks through which these businesses conduct their transactions will check the three months’ wage accounts. After that the owners of these industries will be able to apply to these banks for the loans. They will not be able to apply for loans higher than the average of the three months’ wages. Bangladesh Bank will not take interest on these loans, but the banks will be able to impose a 2 per cent charge.
The banks will apply to the central bank for the loans on behalf of the applicants and then hand over the loans to these companies. The loan applications are to be submitted by 20 April. Bangladesh Bank will provide the loans for three months’ wages in three phases, beginning from the last week of April and continuing up till June.
The banks will send the wages directly to the accounts of the workers. Those who do not have bank accounts will have to use their national identity cards (NIDs) to avail mobile financial services (MFS). The workers will also be able to open bank accounts free of charge, after producing their NID’s.
The banks, according to the guidelines, will have to repay the loans to Bangladesh Bank within two years. They will get a six-month breather to start repaying the loans, and then will have to make the repayment over 18 months in 18 installments. If any of the companies fail to make their repayments in time, the banks will be able to impose a 2 per cent interest as fine. The installments must all be paid up by June 2022. If any bank fails to pay the installments, the amount will be deducted from the bank’s account with the central bank.
In its circular, Bangladesh Bank stated that in face of the world economic crisis emerging due to the COVID-19 pandemic, the prime minister Sheikh Hasina on 25 March announced a stimulus package for the industrial sector. The government, it said, was providing Tk 50 million in this regard for the payment of workers’ wages in running export-oriented industries.