The latest fiscal and policy stimuli for export
Posted on 05 December 2009
The government announced on October 25 last a series of fiscal and policy stimulus packages worth over Tk 10 billion (1,000 crore) for export sectors to offset the adverse impact of global recession on the domestic economy. The facilities the exporters are currently enjoying will continue as usual. This is the second stimulus package of the government.
Under the new package, the government will pay the licence renewal fees of captive power plants used in industrial units from November 1, 2009 to June 2010 to compensate for the power crisis. The government will need Tk 70 million (7.0 crore) more to pay the renewal fees. This money will come from the earlier stimulus package of Tk 50 billion (5,000 crore).
In this package, the government has extended the bank loan re-scheduling facility without any down payment up to June 30,2010 from October 2009 at a 10 per cent rate of interest, instead of the current 13 per cent for the readymade garments (RMG) and textile sectors. If any borrower defaults a loan during the proposed time-frame, extension of the re-scheduling facility will be considered under the bank-client relationship.
Under the package, exporters will receive 5.0 per cent cash incentives for new export destinations for three years while all export destinations, except the US, EU and Canada, will be considered as new. The exporters will get 5.0 per cent cash incentives in the first year, 4.0 per cent in the second year and 2.0 per cent in the third and final year.
According to the package document, members of Bangladesh Textile Mills Association (BTMA) will receive the above facility only for direct export of yarn. This sub-sector will also receive the bank loan rescheduling facility.
The government has also decided to give a special benefit to small and medium enterprises(SMEs). Companies that exported upto $3.5 million in... [continues]
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