Govt bails out textile sector with stimulus package
March 26, 2009 (Portugal)
The Portuguese government has finally woken up to the fact that its textile and garment industry is in the deep throes of the recessionary trends prevailing across its key markets; countries in the European Union and needs emergency measures for survival.
The government has now announced a € 850 million stimulus package for the domestic textile and garment sector. This will help the sector access funds at cheaper rates, boost exports and ensure that jobs are not lost in the labour intensive sector.
The textile and garment industry in Portugal employs over 180,000 people and accounts for over 12 percent of export revenues of this European country. Exports fell by 6.5 percent in 2008, mainly due to reduced demand from its biggest market; Spain.
The government will also fund investment and give incentives for modernization of the textile units to upgrade themselves as well as provide support for availing of export credit insurance and faster access to European Union funds.
Fibre2fashion News Desk - India
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