The Ministry of Commerce (MoC) is going to sit with the stakeholders concerned today (Thursday) to devise a mechanism for proper utilisation of the factory remediation fund for RMG sector, officials said. Apparel makers’ allegation on high rate of interest on the remediation fund is likely to be the major agenda of the meeting. Representatives from the government, banks and RMG associations will discuss about ways to ensure equal treatment in loan disbursement in it, they added. “We will sit today (Thursday) to devise a mechanism for proper utilisation of the remediation fund,” MoC additional secretary (export) Zahir Uddin Ahmed told the FE on Wednesday. Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) have informed MoC that they are facing problems to get the fund, he also said. “As a result, we are going to hold the meeting for taking necessary steps to address the existing problems,” he added. MoC has formed an eight-member committee on January 14 to expedite the remediation fund disbursement-related activities. The committee will submit recommendations for resolving the problems regarding disbursement of the fund to MoC within the next 15 days. The International Finance Corporation (IFC) has provided $50 million as loan for upgrading the country’s troubled RMG units. Five local banks have signed agreements with IFC for disbursing the loan. Besides, some international agencies, including the Japan International Cooperation Agency (JICA), have pledged to provide funds for factory remediation.
