The government has offered jute sector businesses a moratorium facility for partial or total amount of their outstanding loans taken from different banks.Under the facility, working capital loans along with the interests will be transferred to a block account for two years and the loans will be paid within 10 years.Bangladesh Bank on Monday issued a circular to all banks citing a decision taken by the Financial Institution Division of the finance ministry in this regard.According to the circular, outstanding loans and interests until October 31, 2018 will be brought under the facility and the rate of interest on the transferred fund will be set based on the cost of fund.It also said that those who enjoyed the block account benefit earlier and their loans became classified would also be entitled for getting this privilege.If any beneficiary fails to pay four instalments in the same way, his or her block account facility would be cancelled, BB mentioned in the circular.Citing the decision of the finance ministry, the central bank said that those who received loans from the refinance scheme for the jute sector would not be entitled for the block account facility.The government has provided the facility to the jute sector businesses following repeated appeals from Bangladesh Jute Mills Corporation, Bangladesh Jute Mills Association and Bangladesh Jute Spinners Association.The members of the associations made the appeal to the government against the backdrop of the export slowdown of jute and jute goods, sector people said.
