Beximco urges govt to extend Tk400cr loan instead of closing factories
In a letter sent on Sunday, the Beximco Textiles MD said Tk550-600 crore will be required to close the factories by paying the workers’ dues
Beximco Textiles has requested the government to avoid closing its factories under the Beximco Textiles Division by settling worker and employee dues of Tk550-600 crore.
The Beximco Group, which owns Beximco Textiles, has also requested Tk400 crore in short-term credit assistance – known as a CC loan – at an average rate of Tk100 crore per month to maintain factory operations and ensure regular payment of salaries and allowances.
On 23 February, Beximco Textiles Managing Director Osman Kaiser Chowdhury urged Labour and Employment Adviser Brig Gen (retd) M Sakhawat Hossain, requesting a reconsideration of the decision to close the export-oriented factories.
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M Sakhawat Hossain heads the Advisory Council Committee on Reviewing Labour and Business Conditions at Beximco Industrial Park.
The receiver appointed by the Bangladesh Bank has informed Beximco Textiles Division officials that all laid-off factories in Beximco Industrial Park will be closed after worker and employee dues are settled by the end of this month.
Earlier, on 30 January, Beximco Textiles wrote to the labour adviser, requesting the resumption of back-to-back letter of credit (LC) facilities and a Tk400 crore cash credit to sustain exports.
In a letter sent on Sunday, the Beximco Textiles MD said Tk550-600 crore will be required to close the factories by paying the workers' dues.
On the other hand, if a total of Tk400 crore is provided in the next four months and back-to-back LC facilities are allowed, it will be possible to keep the factories running at full speed.
"In addition to the necessary back-to-back LC, if you take necessary measures to secure cash-credit assistance of Tk400 crore in phases, all of us will be able to get rid of a very big crisis," Osman Kaiser said in the letter.
"As a step to overcome the crisis of confidence of our stakeholders, we, on behalf of the current management committee, are ready to accept any reasonable advice or suggestion from you," he added.
Stating that this is one of the largest industrial parks in the country, which has been developed over many years with the cooperation of the government and lending banks, Beximco Group said, "There is no hesitation in admitting that due to some wrong decisions taken by us and the unavoidable adverse circumstances we faced in the past, these institutions are facing a crisis today, and a mistrust in our relationship has arisen.
"However, we are also observing with regret that sometimes relevant information about these institutions is being presented incorrectly."
The Beximco letter has claimed that both the Bangladesh Bank and state-owned Janata Bank consider a total of 31 factories under Beximco Textiles Division, and all the factories have physical infrastructure and operational set-up.
The loan amount for these factories at Janata Bank is Tk28,000 crore, but the Beximco Textiles Division's loan is incorrectly stated as Tk45,000 crore, it added.
In the letter, Beximco Group said Beximco Textiles Division has been the highest exporter through Janata Bank as a single customer for many years, with an average monthly export of $32 million over the last six years. In 2022, the average monthly export reached $59 million.
According to the group's calculations, Beximco Textiles Division had 45,000 workers and employees in July, but this number has now declined to 35,000.
