Govt okays $85.5m foreign loan for 12 private projects

The government has approved $85.5 million foreign loan for 12 private projects including power, textile, telecom and pharmaceuticals.

The Board of Investment Scrutiny Committee for approval of private sector foreign borrowing cleared the loan at its 81st meeting on Tuesday.

boiThe meeting was presided over by Dr Atiur Rahman, Governor, Bangladesh Bank and Convenor of the committee, while the committee members including representatives of the Prime Minister’s office, Ministry of Finance, Ministry of Commerce, Ministry of Indtries, Board of Investment and officials of the committee secretariat were also present.

Of the loans $ 21.0 million has been approved for Color City Limited, $ 14.0 million for Raj Lanka Power Company Limited, $ 14.75 million for Walton Hi-Tech Indtries Limited, $ 4.50 million for Fashion Forum Limited, $ 4.0 million for Saffa Sweaters Ltd, $ 3.3 million for Aman Knitting Ltd, $ 6.9 million for Masi Hata Sweaters Limited, $ 5.1 million for Nipro JMI Pharma Ltd, $ 10.0 million for Augur Wireless Broadband Bangladesh Ltd , $ 1.3 million for Good Rich Sweaters Limited & rest of the amount for two other companies.

The highest interest rate of the loan for approved proposals is 3-month LIBOR+4.50% p.a, reports the Financial Express (FE).

The committee approved foreign loan amounting to $ 1040 million in FY 2012 and $ 1821 million in FY 2013.

The committee officials (Two Joint Directors of Bangladesh Bank) informed the committee that more foreign financing proposals are under process and close consideration for approval.

The committee hoped that this type of foreign financing will be helpful to keep the dollar price stable, the deficit of country’s “Balance of Payment” will decrease and it will create more job opportunities in the country.