BGMEA has urged Bangladesh Bank to extend support to the RMG industry in its trying time so that the sector can turn around by overcoming the unprecedented impacts of the Covid-19.
A delegation of BGMEA led by Acting President SM Mannan (Kochi) made the call during their meeting with Bangladesh Bank (BB) Governor FazleKabir at BB office on September 21, a press release said.
The BGMEA delegation included former BGMEA President Md. SiddiqurRahman, incumbent First Vice President Syed Nazrul Islam, Vice President ShahidullahAzim, Vice President (Finance) KhandokerRafiqul Islam, Vice President Md. NasirUddin, Vice President RakibulAlamChowdhury and Directors Asif Ashraf, Md. KhosruChowdury, Rajiv Chowdhury, Md. ImranurRahman and Mohammed Meraj-E-Mostafa (Kaisar).
Deputy Governors of Bangladesh Bank KaziSayedurRahman and Abu Farah Md. Nasser were also present at the meeting.
Acting President SM Mannan (Kochi) expressed thanks to the Bangladesh Bank for providing crucial policy support to the garment industry at a time when the sector started facing unprecedented challenges caused by the pandemic. The support helped the sector in its efforts to turn around.
The BGMEA leaders said that the industry is going through a difficult time as the pandemic is not over yet. The sector is still making all-out efforts to overcome the massive Covid fallouts and remain competitive in the global market.
Under the given circumstances, RMG industry needs policy support from the Bangladesh Bank to address the present challenges and bounce back. The BGMEA leaders urged Bangladesh Bank to provide very few facilities.
There are, if there is a group of companies, of which one the companies becomes loan defaulter, in that case BGMEA proposes to BB not to discontinue financing or other business transactions in relation to the other companies for the sake of repayment of outstanding loans and to amend the BRPD Circular No. 08 on incentive packages April 12, 2021 as exporters may not be able to fulfill all the conditions mentioned in the circular under the present circumstances.
On September 20, 2021, BB issued a Circular whereby it was directed to add 30% local VAT with respect to all incentives. There will be greatly harmful for woven industry and to some extent to knit industry, and hence is asked to be amended, to increase the number of loan repayment instalments from 18 to 36 with respect to the incentive provided for the salary payment of garment workers.
According to BB circular, if any exporter fails to repay any COVID incentive loan within due time, then instead of the 4.5% interest rate, full rate shall be charged. BGMEA requests for this condition to be amended and to reduce the EDF interest rate from 2 – 1.5 %, in an attempt to ensure the survival of the export oriented industry, during this COVID-19 period.
All the RMG owners, who failed to repay their loan instalments in due time, proposal will be made to reschedule such loans along with abolishing certain charges.
