Ailing industry owners seek PM’s help for loan exit solution

The owners of ailing industries have sought Prime Minister Sheikh Hasina's intervention in facilitating the implementation of the exit mechanism to resolve their defaulted loans.

Drawing the premier's attention, they voiced their concerns in this regard during the inaugural meeting of the FBCCI standing committee on the rehabilitation of struggling industries, held at the FBCCI headquarters in the capital on Tuesday, reads a press release. 

In the meeting, they recounted the formation of a high-powered task force for the rehabilitation of ailing industries and debt settlement following the assumption of power by the Awami League government in 2009.

Subsequently, in accordance with the task force's decision, the government issued a circular to absolve these factories of their liabilities. However, the owners said they were unable to do so due to the banks' lack of cooperation.

They claimed that despite their dire straits, banks initiated legal proceedings against them in financial courts. Hence, they are unable to embark on new business ventures due to these litigations. Given these circumstances, they call for assistance from the prime minister.

The Industries Ministry earlier identified 193 sick industries that are unable to sustain their business and pay back loans.

FBCCI standing committee Chairman Sadek Ullah Chowdhury said a body was established in 1998 to aid the rehabilitation of the sick industries. At that time, the Awami League government allocated a fund of Tk100 crore for this purpose. However, these efforts were halted subsequently. Later in 2008, a new database of struggling industries was initiated through the efforts of the FBCCI.