• Thursday, Dec 08, 2022
  • Last Update : 10:24 am

BGMEA asks Bangladesh Bank for help

  • Published at 11:40 am September 22nd, 2021
RMG apparel
Mahmud Hossain Opu/Dhaka Tribune

They proposed that BB maintains the loan facility with the opportunity to reschedule default loans without stopping the ongoing financing

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) urged Bangladesh Bank (BB) to extend its support to the RMG industry in turning around from the economic fallout caused by the Covid-19 pandemic. 

They proposed that the central bank maintain the loan facility with the opportunity to reschedule default loans without stopping the ongoing financing if an individual, company or a group of companies becomes a loan defaulter.

According to the BGMEA, the central bank issued a circular where the bank directed to add 30% local VAT with respect to all incentives. 

But this will be greatly harmful for weavers, and to some extent, the knitters. 

The BGMEA urged to amend the circular. 

They made the request during a meeting with the central bank governor Fazle Kabir at the BB head office on September 21.

SM Mannan (Kochi), senior vice-president and current acting president of the BGMEA, led the BGMEA delegation.

Kochi thanked the Bangladesh Bank for providing crucial policy support to the apparel industry at a very delicate time, which helped them to make a turnaround.

However, the BGMEA leaders said that the pandemic was not over, and further help was needed for Bangladesh to regain competitiveness in the global market.

Also Read - BGMEA seeks govt support for RMG sector to overcome pandemic challenges

The apex body of the apparel manufacturers also proposed to increase the number of loan repayment instalments from 18 to 36 with respect to the incentive provided for the payment of the wages and allowances of the apparel workers.

Moreover, the BGMEA also requested to amend the BRPD circular number 08 on incentive packages, April 12, 2020, as exporters may not be able to fulfill all the conditions mentioned in the circular in the present circumstances.

According to the BB circular, if any exporter fails to repay any pandemic incentive loan within due time, then the central bank will charge full interest rates instead of the 4.5%. BGMEA requested to amend the condition.

The BGMEA also urged the central bank to reduce the export development fund (EDF) interest rate from 2% to 1.5%, in an attempt to ensure the survival of the export-oriented industry during this Covid-19 period. 

The apparel manufacturers’ organization also proposed to reschedule loans along with abolishing certain charges for all the RMG factories who failed to repay their loan instalments in due time. 

Also Read - BGMEA proposes more tax cuts for FY22 citing Covid-19 losses

In the meeting, the BGMEA delegation included former BGMEA President Md Siddiqur Rahman, incumbent First Vice-President Syed Nazrul Islam, Vice-President Shahidullah Azim, Vice-President (Finance) Khandoker Rafiqul Islam, Vice-President Md Nasir Uddin, Vice-President Rakibul Alam Chowdhury and Directors Asif Ashraf, Md Khosru Chowdury, Rajiv Chowdhury, Md Imranur Rahman and Mohammed Meraj-E-Mostafa (Kaisar).

Deputy Governors of Bangladesh Bank Kazi Sayedur Rahman and Abu Farah Md Nasser were also present at the meeting.

Facebook 50
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail