Dhaka prepares bailout package for industries

April 16th, 2009 - 11:47 am ICT by IANS  

Sheikh Hasina Dhaka, April 16 (IANS) The Bangladesh government will unveil a cash subsidy package ranging between Taka 25 billion and 30 billion ($357-427 million) to export-oriented industries hit by the global meltdown, a minister said.
“Only the affected exporters will be given bailout assistance from the package, and it may be Tk 2,500 crore to Tk 3,000 crore,” Commerce Minister Faruk Khan told media Wednesday.

Finance Minister A.M.A. Muhith said the recession package would be announced before Prime Minister Sheikh Hasina leaves for Saudi Arabia on an official visit April 22.

The Daily Star newspaper quoted unnamed finance ministry sources as saying that the sectors to get cash subsidy include jute and jute goods, leather, frozen foods, garments and textile.

These are among the traditional export areas, while Bangladesh’s trade mainstay are ready made garment and knitwear exports and export of manpower - both of which are badly hit.

However, the World Bank (WB) is sceptical about this move.

WB last week cautioned the government about the demands for bailout.

It pointed out that that the government did not have adequate fiscal space to finance large bailout packages.

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