Bangladesh Bank imposed restrictions on loan disbursement and LC of banks under the control of Group S Alam due to taking out loans anonymously through irregularities and corruption. Because of this, the businessmen have to face various problems in those banks. In this situation, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has appealed to the central bank to withdraw the LC ban on banks.
On Tuesday (August 27) evening, Bangladesh Bank Governor Dr. The leaders of BGMEA made this demand during the meeting with Ahsan H. Mansoor.
At this time, BGMEA also demanded not to reduce the limit of Export Development Fund (EDF) including soft loan of 3000 crore taka for the businessmen affected by political unrest in the country.
Leaders of BGMEA said that many industrial establishments have been affected by political unrest recently. In order to turn around, they need a soft loan of 3 thousand crore taka. They have promised to repay these loans with interest within the next 1 year. In view of the demands of garment industry owners, the governor assured to take the matter into consideration.
Garment industry entrepreneurs said that there are currently two and a half billion in this fund made up of reserves. If the situation is normal, this fund will be phased out gradually. Moreover, restrictions have been imposed on LC and loan disbursements of 6 banks under the control of S Alam Group. Banks are involved in various transactions including merchant LCs. They are suffering due to restrictions. It has been demanded to remove the restrictions on these banks in a quick time. We have been assured to solve these problems.
Abdullah Hill Rakib, senior vice president of BGMEA, said that Bangladesh Bank has recently informed that the limit of Export Development Fund (EDF) will be further reduced. Traders are likely to suffer if the funding limit is reduced further. I have requested not to reduce the EDF limit at this time. The governor said that the EDF limit will not be reduced in view of our demands.
BKMEA Vice President Fazle Shamim Ehsan said, we took three demands to the governor. These included opening of LCs of 6 banks, provision of fixed amount of soft loans for businessmen and non-reduction of EDF funding. The governor showed a positive attitude on all three issues. Hopefully, the LC problem of six banks will be resolved within a week.
