Dhaka, Nov 25 (bdnews24.com)--The government has rolled out an additional Tk 1,000 crore economic stimulus package for export-focused industries to tide over the impact of global economic recession.

Finance minister A M A Muhith announced the package titled 'The second stimulus package for the development of export sector' in a news conference on Wednesday.

There are some conditional aid for the main source of export income, readymade garment sector.

In April, the government unveiled a stimulus package of Tk 3,424 crore on the recommendations of the recession taskforce, but the garment industry was not included.

Wednesday's package was revealed on the recommendations of the committee on RMG sector, Muhith said.

He said: "We (the government) won't allow any industries to collapse due to recession."

"The affected sector will be provided all kinds of required assistance."

The ship-building industry, another potential export sector, will be given five percent cash assistance under the new package.

The RMG sector is getting the incentive for three years for exporting to new markets and creating new markets.

This facility will not be available in exporting products to the main markets, the USA, the European Union countries and Canada.

The package is being given to encourage the expansion of new markets.

The interest rate of loan for RMG sector has been set at maximum 10 percent.

Bangladesh Bank set the lending rate at minimum 13 percent for this sector in April last year.

The deadline for loan rescheduling in garment sector except downpayment has been stretched to June 30, 2010 from Oct 1, 2009.

If any industry defaults on repayment of loan by this period, it will be managed on a mutual understanding of the related banks and clients.

Bangladesh Bank has issued a circular on the matter, Muhith said.

He said the central bank has already instructed the banks to slash service charge in several areas for export sector to tackle the recession.

From now, the captive generator renewal fee for the export sector will be given from the stimulus package, which means the industrialists need not pay the renewal fee from Nov 1, 2009 to June 30, 2010.

It will cost the government Tk 7 crore. The industry owners had to pay Tk 5 lakh in captive generator renewal fees.

The small and medium range garment industries--industries which earn up to $3 million--have been given aid separately.

They will be provided assistance at five percent on the increased income compared to the last fiscal year.

Those small and medium factories that do not have their own captive generator or diesel-run generator will be given 10 percent assistance on electricity bill up to June 30, 2010.

The additional incentive will be given at five percent in the first year, four percent in the second year and two percent in the third year as additional subsidy on the income of the export of new products and expansion of new markets (except US, Canada and EU countries).

The garment industry owners will get the same facility on the export of thread, the same with the export of home textile.

The government has been providing five percent assistance in cash in apparel sector so far.

The government had unveiled the first stimulus package on the recommendations of the taskforce, formed in April to tackle the global downturn.

The taskforce in its second meeting decided to form a separate committee for the RMG sector.

Former finance minister M Sayeduzzaman was made the head of the committee.

The government formed a nine-member working committee on Oct 15 to find ways to help readymade garments and backward linkage industries amid the global recession.

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