Govt to Meet with Beximco and Others Over Tk103Cr Loan Repayment

The meeting, scheduled by the Ministry of Labour, will bring together officials from relevant government bodies along with the chairmen and managing directors of Beximco Group, Yellow Group, Birds Group, TNZ Group, and Dard Group, sources revealed.

Labour Secretary AHM Shafiquzzaman shared with The Business Standard: "The government provided interest-free loans to these companies to resolve wage arrears for workers, including Beximco. These loans have set repayment terms, and it is essential that they are repaid within that period."

He continued, "The purpose of the meeting is to review the status of wage payments made using the loans and to discuss how the companies plan to repay the outstanding amounts."

Shafiquzzaman further clarified that Beximco received an interest-free loan of Tk60 crore from the government. While many of the companies are currently closed, he emphasized that the loans must still be repaid—whether through the companies' other assets, income, or alternative means.

This loan initiative comes after garment factory workers, especially those employed by Beximco, began protesting for unpaid wages following the fall of Prime Minister Hasina's government in August last year. In response, both the finance and labour ministries stepped in to provide interest-free loans to cover the wage dues.

The Finance Ministry allocated Tk50 crore with a two-year repayment term and a six-month grace period, while the Labour Ministry contributed Tk10 crore, which had to be repaid within six months, specifically for Beximco Textiles.

However, Beximco Textiles has now shut down completely, laying off all workers as of February 28. Despite this, the government has committed to providing an additional Tk525 crore to cover outstanding wages at Beximco Textiles, which will also be loaned to the company.

Beximco Group officials clarified, however, that they did not request government assistance to shut down the factory, but rather to keep it operational amidst mounting challenges.

In November, the government provided additional interest-free loans to other groups: Tk14 crore to Birds Group in Gazipur, and Tk13 crore to Dard Composite Textile Limited in Gazipur, to cover wage arrears. Furthermore, the government allocated Tk16 crore to TNZ Apparels Group to settle worker wages at its five factories in Gazipur, with Tk10 crore coming from the Finance Ministry and Tk6 crore from the Labour Ministry’s central fund.

An anonymous senior Beximco Group official told The Business Standard that after the fall of the government last year, Beximco Textiles had received the Tk60 crore loan to pay wages for its 45,000 workers, with Janata Bank also contributing approximately Tk200 crore.

This official also noted that a significant portion of Beximco's assets, including its factories, is mortgaged to Janata Bank, and while there are some unencumbered lands, they cannot be sold to settle debts. The factory closures have left these properties unproductive, further complicating any potential repayment plan.

“Selling off mortgage-free properties to pay off the government’s dues is not a quick solution, as the process involves legal documentation and other time-consuming procedures,” he added.

This meeting represents a critical step in addressing the outstanding loan repayment and ensuring the continued welfare of the workers who rely on these industries for their livelihoods.