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Annotex Group to settle Tk 4,900cr debt with Janata Bank by 2025


Published : 08 Jun 2024 09:31 PM

Annotex Group has agreed to pay off Tk 4900 crore owed to Janata Bank within the next two years by selling mortgaged land. This decision follows an agreement involving the bank, Annotex, and the buyer. The bank’s board of directors approved the plan, and Annotex has pledged to comply for the sake of national interest and economic stability.

As of November 2022, Annotex Group's debt to Janata Bank, including interest, was Tk 8178 crore. After waiving Tk 3359 crore in interest under a one-time exit facility, Annotex was required to repay Tk4819 crore by December 2023 but failed to meet the deadline. The debt now stands at Tk 4960.77 crore, with a new repayment deadline set for 2025.

From 2014 to 2021, Annotex Group regularly repaid loans, totaling over Tk 1800 crore. However, repayment was hindered by the COVID-19 pandemic and the Ukraine war, which disrupted exports and raw material imports. 

Approximately 128 acres of valuable land adjacent to the Turag River in Ashulia and Tongiis mortgaged with the bank. The land's market value has significantly increased, providing a viable means to settle the debt. Mohammad Yunus, owner of Annotex Group, expressed optimism about the new arrangement, anticipating mutual benefits for the bank, borrowers, and the country’s economy.