The government has provided a moratorium on loan repayment for the country’s cash-strapped frozen fish exporters to help them mitigate the liquidity problem. Around 30 per cent of their working capital loan along with the interest will be transferred to a block account for one year under the moratorium, according to a recent circular issued by the finance ministry. The exporters were facing the problem due to financial crisis in the European Union and, devaluation of euro and ruble against US dollar. After the one year period, the exporters will have to repay the loan at an interest rate of 7.0 per cent while the government will provide the remaining 3.0 per cent. The exporters will also require repaying the loan in quarterly instalments over a period of eight years, according to the circular. The government will have to pay an amount of Tk 754.9 million for eight years, which would be provided from the budgetary incentive package, it added. The move came following a demand for transferring 40 per cent of the loan to block account so that the cash-strapped exporters could overcome the liquidity shortfall. According to the ministry officials, some Tk 9.60 billion (based on their working capital as of 30 June 2015) would be kept in the block account. The exporters would not pay any installment for one year and they could repay it by next eight years with quarterly installment facility. Exporters said that due to the EU crisis and currency devaluation, they lost 40 per cent of their working capital as they had to sell their products at reduced rates. Md Amin Ullah, president of Bangladesh Frozen Food Exporters Association (BFFEA), said the support will help the sector to retain its competitiveness and revive its export growth that witnessed negative trend in the recent years.