BGMEA seeks central bank support to address Covid-19 challenges

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has sought support of Bangladesh Bank for the RMG industry in its struggle to overcome the impacts of Covid-19 and retaining competitiveness in the global market.

BGMEA President Faruque Hassan said the RMG industry was going through a tough time due to an unprecedented crisis caused by the Covid-19 pandemic.

A delegation of the BGMEA led by its president had a meeting with Bangladesh Bank Governor Fazle Kabir at the central bank on Sunday afternoon and discussed the issue, said the apex body of the apparel industry on Monday.

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The BGMEA delegation included Senior Vice President SM Mannan (Kochi), Vice President Md Shahidullah Azim, Vice President (Finance) Khandoker Rafiqul Islam, Vice President Rakibul Alam Chowdhury and other directors.

Hassan thanked the Bangladesh Bank for coming forward with policy support for the garment industry when it fell into deep trouble following the outbreak of the pandemic — at a time when the sector needed it the most.

The pandemic is not over yet and the RMG sector is still trying hard to overcome the massive impacts, he said.

Given the situation, the support of Bangladesh Bank in terms of simplification and relaxation of financial policies pertaining to the RMG industry would help the sector to address the challenges and turn around, said the BGMEA chief.

Earlier, Bangladesh Bank extended the loan limit of garment and textile factories from the export development fund (EDF) to $30 million from $25 million.

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Faruque Hassan urged the Bangladesh Bank to extend the time limit for the enhanced EDF by six months.

He requested the BB to extend the payback period of the loans under the Covid response stimulus package from two years to five years as the sector is going through a rough patch.

He also urged the central bank to write off all debts, interest, and cost of fund charges for the 133 sick RMG factories, taking them into special consideration.

Deputy Governors of Bangladesh Bank Ahmed Jamal and Kazi Sayedur Rahman were also present at the meeting.