Government committee suggests extending additional loan facilities to BEXIMCO

• Loan Proposal:
  BEXIMCO proposed converting a Tk 235.57 billion loan from Janata Bank into an interest-free block for a period of 10 years to clear existing debts, with 2 additional years for repayment.

• Employee Salaries:
  Requested Tk 600 million to pay salaries and allowances for employees for the month of October.

• Additional Loan Facility:
  Sought an additional Tk 7 billion as a new loan facility.

Discontent has spread across several BEXIMCO factories as the company has failed to pay its workers following the fall of the Awami League government, leading to reports of vandalism. The company has defaulted on Tk 180 billion of its Tk 235.57 billion loan from Janata Bank, and it has not brought in Tk 11 billion of export income to Bangladesh. The group's vice chairman, Salman F Rahman, who was once an adviser to former Prime Minister Sheikh Hasina, is currently in prison. In response to the crisis, BEXIMCO has submitted three proposals to the Department of Inspection for Factories and Establishments. The first proposal requests converting its loan into an interest-free block for 10 years, with two years for repayment, and seeks Tk 600 million to cover employee salaries for October, along with an additional Tk 7 billion loan, offering to mortgage properties worth Tk 6.83 billion. The second proposal involves selling BEXIMCO properties and securing financing from within the group or private sponsors. The third proposal suggests dissolving the company and using the proceeds to settle debts, including Tk 5.59 billion for employee wages, though the company stresses that it does not want to close or sell due to the 40,000 employees reliant on it for their livelihoods.

In response, the committee on profiling companies in crisis recommended that BEXIMCO remain operational to protect its workers and support debt recovery. The committee suggested converting the Tk 235.57 billion loan into an interest-free block and approving Tk 6 billion in funded export loans and Tk 4 billion in non-funded loans, conditional on using these funds solely for employee salaries and operational expenses. It also recommended that any profits made by BEXIMCO be directed towards repaying its debt to Janata Bank. However, Janata Bank officials pointed out that BEXIMCO’s loan exceeds the permissible limits by 16 times, violating both the Bank Company Act and a memorandum with the central bank. Given BEXIMCO's defaulted debts and halved export income, the bank has no capacity to provide further loans and has suggested that BEXIMCO approach government banks for funding.