RMG sector provided with Tk10,500cr loan: Minister

The government has provided Tk10,500 crore loan on easy terms to continue the production in the readymade garment industry.

Commerce Minister Tipu Munshi disclosed the amount while replying to a query of Chattogram-11 constituency's lawmaker M Abdul Latif in Parliament on Tuesday.

The minister said the government has set up a fund to provide low-interest loans of Tk33,000 crore as working capital for export-oriented sectors affected by the ongoing pandemic.

"The conditions to repay the interest on loans given to the RMG sector have been simplified," he said, adding that in the export-oriented textile sector, alternative cash assistance is being provided at the rate of 4% instead of duty bonds and duty drawback.

Small and medium industries are also being provided with loans at 4% interest rate, he added.

Munshi said loans at 4% interest are being provided for new market expansion, apart from the United States, Canada and the United Kingdom.

"Further special benefits are being offered at an additional 2% interest rate, with the existing 4%, for exporting to the Eurozone. In addition, special cash assistance is being provided at the rate of 1% interest in the RMG sector," he informed.

He said the size of the EDF fund for the purchase of raw materials for export products has been increased to $5.5 billion.

Negotiations to reinstate canceled orders from buyers of the United States and the European Union are continuing, he confirmed.

Meanwhile, in reply to a tabled question, Expatriate and Overseas Employment Minister Imran informed that the Wage Earners' Welfare Board (WEWB) has launched a project, funded by the World Bank, for the reintegration of returning workers, with an aim to enhance their skills.

Creation of a database for the returnees is also being prepared, for which an inter-ministerial committee has been formed. The ILO is providing technical support in this regard, he noted while replying to a query of Noakhali-2 constituency's lawmaker Morshed Alam.

Replying to a query of Kishoreganj-3 lawmaker Mujibul Haque, he said, "The government has also allocated Tk500 crore for the rehabilitation of returning workers. Of this, Tk70.59 crore has been given to 2,853 people at 4% interest rate and Tk155.61 crore has been given to 7,027 people at 7%-9% interest rate.

Meanwhile, replying to a query of lawmaker M Abdul Latif from Chattogram-11 constituency, State Minister for Disaster Management and Relief Enamur Rahman said that the 'Emergency Multi-Sector Rohingya Crisis Response Project' is being implemented with a World Bank grant of Tk599.20 crore.

He said Tk117.32 crore has been allocated so far, and Tk102.20 crore has already been distributed till May this year.