The government is preparing to extend financial and policy support to Nassa Group, one of Bangladesh’s largest garment manufacturers, in a move aimed at keeping its production lines operational and safeguarding wages for tens of thousands of workers. This follows a similar intervention earlier this year to assist Beximco Group.
Although several Nassa concerns have defaulted on loans, officials confirmed that the central bank will allow the group to open back-to-back letters of credit (LCs) with special arrangements. The policy, coordinated by the Ministry of Labour and Employment and the Financial Institutions Division, will prioritize wage payments and factory expenses before banks recover loan installments.
A high-level meeting at Bangladesh Bank on Sunday brought together Nassa Group representatives and officials from seven creditor banks. Sources said the central bank is preparing to issue a circular enabling banks to facilitate LCs despite the group’s default status.
Khandakar Mohammad Saiful Alam, vice chairman of Nassa Group, said that the discussion focused on “how to keep operations stable.” He added, “Bangladesh Bank will finalise the mechanism, and we hope all parties act positively to protect thousands of workers and sustain export earnings. Without this, unrest is inevitable.”
Labour Secretary AHM Shafiquzzaman confirmed that a policy-level decision had been reached to rescue the group. “Nassa managed for the past eight to nine months on its own, but the situation has reached a breaking point. About 25,000–27,000 workers are employed there. If wages stop and factories close, it will trigger major unrest,” he said.
The secretary noted that while some banks had previously overlooked lending rules, they are now enforcing strict compliance, complicating factory operations. He also said buyers have assured the ministry that they will continue placing orders. An advisory committee on trade and industry has also backed the plan.
Bangladesh Bank spokesperson Mohammad Shahriar Siddiqui said Nassa could seek LC support through its banks for export-oriented activities, similar to the lifeline extended to Beximco. In March, the government allocated Taka 525 crore to Beximco Group to clear arrears of more than 27,000 workers from 14 shuttered factories.
Founded in 1990, Nassa Group grew into a conglomerate spanning garments, spinning, textiles, logistics, real estate, and banking. But its fortunes changed dramatically after the ouster of the Awami League government in August 2024.
Its chairman, Nazrul Islam Mazumder — once a powerful figure as a 15-year head of the Bangladesh Association of Banks (BAB) and Exim Bank — was removed from his posts, his family accounts frozen, and eventually arrested on corruption charges in October.
A Nassa director said that the group is attempting to sell assets, but many transactions require Mazumder’s signature, for which the home ministry has been approached. “Operations continue under authorized signatories, but the situation is dire,” he said.
Shahjalal Islami Bank managing director Mosleh Uddin Ahmed said some Nassa accounts remain regular. “We handled exports worth Taka 900 crore for them even in 2024. But because other concerns defaulted, the entire group has been red-flagged in the CIB,” he said.
The Criminal Investigation Department (CID) has accused Mazumder of laundering hundreds of crores through under- and over-invoicing, moving funds to the UAE, UK, Canada, Singapore, and Thailand. Investigators also traced US $ 3 million transferred to the US via trade-based laundering between 2020 and 2024.
