The Financial Express

Owners urge government help to settle liabilities of ailing non-textile factories

| Updated: January 04, 2022 17:12:28

Owners urge government help to settle liabilities of ailing non-textile factories

The government should extend its support to ailing non-textile factories by settling their liabilities, owners of such industries urged on Sunday.

Due to ill conditions, many of these companies are in legal battles with banks over the loan default issue which as a result holds back these businesses from launching new ventures, they further said.

The call came at the first meeting of the FBCCI Standing Committee on Rehabilitation of the Sick Industry, organised by the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) at its office in the city's Motijheel, according to a press release of the apex trade body.

The government, back in 2009, formed a high-powered task force to rehabilitate the ailing industries and settle liabilities by categorising them into three segments - garments, textiles and non-textiles.

As per the decision of the task force, the government had issued circulars settling the liabilities of some 279 garment and 100 textile factories but no non-textile businesses got any such facilities, the press release noted.

Despite the ill condition of these industries, the corresponding banks have filed cases in the Artha Rin Adalat (money loan court) showing those businesses as defaulters.

As a result, these businesses have been unable to take on new business ventures, said Sadeque U Chowdhury, chairman of the FBCCI Standing Committee.

There were several meetings with the Bangladesh Bank and the Ministry of Finance for issuance of a circular for non-textile factories, but no solution came out.

Mr Chowdhury told the meeting that a 'Munsef Committee' was formed in 1998 to rehabilitate the sick industries while the then Awami League government raised a Tk 1.0 billion fund to rehabilitate sick industries.

Meanwhile, FBCCI Senior Vice President Mostofa Azad Chowdhury Babu, who addressed the meeting as the chief guest, said a separate desk would be set up at the FBCCI to assist and rehabilitate the sick industries.

At the same time, a letter will be sent to every chamber and association in order to make a list of sick factories, he said.

Once the list is prepared, the FBCCI will take steps to rehabilitate the newly ailing factories through discussions with the concerned ministries and the central bank, he added.

FBCCI Secretary General Mohammad Mahfuzul Hoque, and director-in-charge of the Standing Committee Tahmin Ahmed, among others, spoke at the programme.

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