Standard Group to get Tk 4b on easy interest

Staff Correspondent, DHAKA, Dec 14: The central bank will provide around Tk 4 billion at easy interest to the Standard Group to help it resume production in its factory that was recently burnt down.

 

According to Bangladesh Bank (BB) Deputy Governor SK Sur Chowdhury, three more banks will act as lenders apart from the central bank.

 

The decision came from a meeting of the BB officials and those of the Standard Group.

 

Chaired by Bangladesh Bank Governor Dr Atiur Rahman, the meeting was attended, among others, by BGMEA President Atiqul Islam and BKMEA Vice President Mohammad Hatem.

 

Chowdhury said after the meeting that they had discussed ways how to reopen the factory soon by making up the huge loss the Gazipur factory had incurred due to sabotage and violence.

 

“The factory will be given $ 25 million as loan under Export Development Fund (EDF) regulation. The interest of the loan will be fixed by adding 1.5 percent to London Inter Bank Offer Rate (Libor),” he said.

 

Besides, Standard Chartered Bank, HSBC and Citibank NA will lend $25 million, the deputy governor added.

 

Under the EDF rule, the central bank provides finance to the banks by adding one percent interest to Libor. The banks invest in the export institutes by adding an additional 2.5 percent interest on it.

 

To finance the Standard Group, the BB will provide fund to the three lending banks by adding 0.5 percent to the Libor rate.

A deadly fire had gutted the garment units of the Standard Group at Konabari in Gazipur on November 28. The 12-storey building and some covered vans were burnt in the fire.

 

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Atiqul Islam and Standard Group Chairman Engineer Mosharraf Hossain at a press conference on December 1 said the incident was an ‘act of sabotage’ and the factory incurred a loss of Tk 120 billion.

 

They met the Prime Minister Sheikh Hasina and sought her cooperation to revive the factory and she visited the factory on December 3.

 

risingbd/BHM