Bank loan
Recently we took BOI registration for a joint venture composite textile industry with Canadian investment. The cost of the project is US $ 5.5 million. CIDA will also provide grant for one year to two expatriate staffers for technical support. Canadian investment is 25% plus technical cooperation plus guaranteed 100% buy back and the bank loan is to be refunded in five years. One local director shall have one year operational and management training in Canada. The dying and knitting machines are 2 to 4 years old which will be purchased from Canada at 15 times less than the prices of new equipment to ensure that the project will be more viable and competitive. It can create 1250 jobs and the yearly export turnover is estimated at Tk. 93.35 crores.
Having all these benefit and positive project feasibility, the entrepreneurs had obvious hope to get faster project financing from our local banks. Moreover, the Bangladesh Bank (BB) and the finance ministry often issue public statements that the banks have huge unutilised funds as they do not get good projects. We approached some of the banks, but they did not show any interest to finance the project.
We hope the BB and the finance ministry will look into our case which will also help them understand that there is a big gap between theory and practice.
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