Nassa's Tk 40b loan being rescheduled

On an avowed purpose of facilitating production and protecting jobs in beleaguered Nassa Group, the defaulter kingpin's loan worth nearly Tk 40 billion out of its accumulated debts is set to be rescheduled.

One of the giant apparel makers in Bangladesh, NASSA's loans have been taken from five commercial banks, insiders said Wednesday, as the bailout is prepared by the current interim government.

The embroiled owner of the corporate, Nazrul Islam Mazumder, is in jail for his roles during deposed regime.

"Since the NASSA Group is playing a vital role in employment and export earnings, the government has decided to permit rescheduling some of its loan through a legal procedure," said a senior Ministry of Finance (MoF) official.

The apparel major will be allowed to get rescheduled its Tk 40 billion worth of loans on a 1.0-percent down payment, said the official.

The borrower will get one-year grace period with a maturity of eight years, as per the bailout arrangement.

The Bangladesh Bank-formed loan-rescheduling committee has endorsed the facilities to the readymade garment (RMG) industry conglomerate so that its production, export and employment continue, said a Financial Institutions Division (FID) official.

"On the special consideration, the government has allowed the case of the NASSA Group as some 22,000 workers and employees are employed in its nearly 25 factories across the country," he added.

Meanwhile, Bangladesh Financial Intelligence Unit ordered all banks to freeze the accounts of Nazrul and his wife on August 25.

On October 2, 2024, Nassa Chairman Mazumder was arrested on a charge of accumulating Tk 781 crore (7810 million) worth of illegal wealth, media reported.

After his arrest, the Criminal Investigation Department (CID) launched an investigation against him on allegations of laundering nearly $3.0 million, or around Tk35 crore, to the United States under the pretext of export.

Nazrul is accused of committing the reported crime through trade-based money laundering using Firoza Garments, a concern of Nassa Group, according to a media statement issued by the CID on October 2.

The central bank stopped LC opening and bank operations for external business of the Group on charge of money laundering and defaulting on several loans in the country's different commercial banks, including EXIM bank, it owned.

Nassa Group, which employs over 22,000 workers, has failed to pay wages since July after its factories closed amid debts of Tk86.76 billion owed to 22 banks and one financial institution. Worker protests continued in recent months.

At last the government appointed an Administrator and vowed to pay wages gradually to the workers from July-October under a deal with Nassa and the Labour and Employment Ministry.

The Nassa Chairman, Nazrul Islam Majumder, also the chairman of EXIM Bank, has been shown arrested following an order by a Dhaka court on September 17 this year in an attempt-to- murder case filed over an incident that took place during last year's July Uprising.

The Bangladesh Bank (BB) has already formed a 9-member committee to look after the entire business and operation of the NASA Group after offering the loan, the FID official said.

Meanwhile, the government will sell assets belonging to Nassa Group Chairman Majumder to pay overdue worker wages and settle the company's defaulted bank loans.