Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
The government provided a loan of Tk 300 million to the Bangladesh Sugar and Food Industries Corporation (BSFIC) to pay outstanding gratuity and provident funds for retired employees, according to a finance ministry order issued recently.
The loan was approved on March 19 with conditions including its repayment within 20 years in six-month installments. The loan bearing an interest rate of 5.0 per cent per annum will have a grace period of five years. It cannot be spent on unapproved sectors.
Besides, the loan will be adjustable with BSFIC's subsidy and trade gap. The finance ministry has suggested the state entity to report regularly about the issue.
The state-owned BSFIC earlier sought Tk 2.24 billion to pay gratuity and provident fund (PF) dues to retirees of both BSFIS and loss-making sugar mills.
It urged the government to provide the money from the losses that accumulated through trade gap and subsidies amounting to more than Tk 80 billion.
The mills' losses are gradually increasing as they are not adjusting production costs with accumulated losses hitting a new high of more than Tk 91.75 billion since fiscal 2005-06, according to the data from Bangladesh Economic Review.
rezamumu@gmail.com