Standard Chartered Bank has disbursed USD Denominated Pre-Shipment Loans, to support the Ready-Made Garments industry face the challenges imposed by COVID-19, said a press release.
The unique COVID-19 response finance programme was designed through consultation with renowned buyers, enabling enhanced liquidity support for clients in a challenging environment.
The Bank’s clients can avail one-year liquidity support for payment of wages, utilities and other operational expenses under this programme, with a moratorium period of 3 months. More than 20,000 workers received their multiple months salaries and festival bonuses on time through these loans.
As the COVID-19 pandemic struck in 2020, the apparel supply chain across the world was disrupted. Retail stores shut down across the US, UK, Germany and other key markets, resulting in deferment and cancellation of orders which impacted RMG exporters in Bangladesh as well. Standard Chartered remained focused on supporting the resilience of the Country’s RMG sector, by enabling access to liquidity amidst this unprecedented scenario. The Bank leveraged its international network to collaborate with select large global buyers and swiftly arranged regulatory approvals to introduce a unique USD-denominated pre-shipment finance loan.
The facility enabled:
• Easy access to funds for salary and other operating expenses
• USD-denominated facility low cost financing with natural hedge against currency volatility
• Extended tenor ofone year which includes a three-month moratorium, giving the clients much needed flexibility in an uncertain operating environment
