Navana likely to get Tk 4000 crore bailout package from government banks

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Navana likely to get Tk 4000 crore bailout package from government banks

Problem ridden Navana Group, one of the country’s pioneering industrial conglomerate, has sought bailout package from the government to keep survive its 27 business units with Tk 10,000 crore investment and about 5,500 jobs.

The government wants to honour the group’s call as its founding chairman Zahurul Islam had to go for absconding for his supportive role in liberation war and Bangabandhu Sheik Mujibur Rahman.

The group chairman Shafiul Islam Kamal in a meeting with the Finance Minister AHH Mustafa Kamal in 2018  sought bailout package from government so that the oldest industrial group can sustain.

The business icon Mr. Islam had find out a formula so that its Tk 5,232 crore commercial loan from 51 private commercial banks and non-bank financial institutions to be taken over by state owned banks.

The group produced a position paper before the government explaining that the it is facing sever financial crisis where it is struggling to repay debts.

Following the meeting the Finance Ministry instructed the state owned banks to take initiative so that they can took over the responsibility.

According to the instruction state owned Sonali, Rupali, Agrani and Janata banks will took responsibility of  32 banks and 19 NBFIs.

Meanwhile,  the central bank is going to hold a meeting on March 24, next  with the banks which has financed Navana Group so far.

According to the planned takeover process, Agrani Bank has been working as the lead bank and overseeing the entire process.

Agrani Bank managing director and chief executive officer Mohammad Shams-Ul Islam told that it would be similar to a bailout programme for Navana Group.

The state owned banks will takeover a portion of those loans of Navana and the rest of the loans will remain with the existing banks,’ Shams-Ul said.

The banks may take over Tk 1,000 crore each of Navana Group’s loans with other banks and financial institutions, he said, adding that the issue was yet to be finalised.

‘We are waiting for the decision of the central bank and would work accordingly,’ he said.

Navana would squeeze its business and would float its shares on the stock exchanges, he said, adding that the entity wanted to make its business manageable by downsizing its business size.

Navana group founding chairman Zahurul Islam had to go for absconding as he had supported liberation war and Bangabandhu Sheikh Mujibur Rahman. The government wants to honour the role of the group’s founding chairman.

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