The government is working to begin soon the disbursement of funds in the 50 billion (5,000 crore) stimulus package announced for the export-oriented sectors to facilitate payment of salaries and wages to their employees, officials said. A Bangladesh Bank official said the central bank will issue a set of guidelines soon for disbursement of the funds as the Ministry of Finance on Tuesday sent directives to make the fund operational.
According to the Finance Ministry directives, businesses can avail the funds from the package at 2 percent interest to pay the salaries and wages of their employees and workers for up to three months. The central bank will administer the fund which will be disbursed through both public and private sector banks.
The money will be sent directly to the bank accounts of employees of manufacturing units instead of giving the money to the owners. Top manufacturing sectors will get priority in the fund disbursement. As per the directives, management of the export-oriented units would have to provide salary sheets of their staff and their mobile banking accounts to banks so that salaries and wages for April can be disbursed directly.
The banks, afterwards, will forward the same documents to Bangladesh Bank for reimbursement. The borrowers will get a six-month grace period, meaning that they will start paying back the borrowed money in instalments to the government from the seventh month of receiving the money.
Earlier, Prime Minister Sheikh Hasina announced the incentive package to support the export-oriented manufacturing industries, affected by Covid-19 pandemic.Amid the coronavirus epidemic across the world, global buyers have cancelled or suspended work orders of the apparel sector worth $3 billion. Other export-oriented sectors are also facing the same problem.
In the situation, the factory owners have cautioned that paying salaries to their employees will be difficult for them unless the government offers a financial package.
