The government on Monday allocated Taka 116 crore to Bangladesh Jute Mills Corporation (BJMC) to pay the arrears of the workers of its jute mills.

Following efforts by Textile and Jute Minister Golam Dastagir Gazi, the Finance Ministry approved the allocation to pay the arrears of the jute mills workers for eight weeks (March and April 2020), a ministry press release said.

The arrears of the workers will be transferred to their bank accounts through cheques.

The Finance Ministry allocated the amount to the BJMC as an operational loan, while the corporation has to pay the arrears of the workers by issuing cheques to their respective bank accounts, the release said.

Earlier, the BJMC signed a loan agreement with the Finance Division.

As per the agreement, the corporation will get a 20-year time period, including five years grace period, to pay the loan with five percent interest.

The BJMC has to pay an installment of the loan in every six months.