The BGMEA, an organisation of ready-made garment manufacturers and exporters, has demanded that the incentive policy benefits provided during the COVID-19 pandemic be continued. In a meeting with Bangladesh Bank Governor Fazle Kabir on Sunday (19 June), the leaders of the organisation also raised some new demands along with this.
A delegation led by BGMEA President Faruque Hassan made a number of written demands at the meeting.
In a written statement, the organisation sought to extend the facility provided from March 2021 for the entire period of 2022 by relaxing foreign exchange rules on foreign trade transactions in the current global economic context and the Ukraine war.
During the lockdown of COVID-19 pandemic, Bangladesh Bank provided various incentive loan packages as well as many policy benefits to the traders.
Notable among the policy benefits are bringing export earnings within 210 days instead of 120 days, giving 180 days extra time to pay back-to-back LC liabilities, extending the loan period from Export Development Fund (EDF) to 180 days instead of 90 days, opportunity to pay back liability of LC using funds from EDF, etc.
Additionally, even if loan instalments aren’t paid, no one will be classified as a defaulter, etc.
Since March 2020, the term of benefits offered at different times have been extended in stages. The last extension in June last year ended in December 2021.
In addition, in 2021, the traders saved themselves from default by repaying 15% of the arrears. That opportunity was given till January this year with special consideration. BGMEA has made the demand to the governor to extend that opportunity. At the same time, the organisation has requested for an extension of the payment period for ‘one-time exit’.
Other demands of BGMEA include extending the deadline for submission of bill of entry for import of goods to 180 days instead of 120 days and not stopping the financing facility of the bank in other associate institutions if any of the group of companies’ defaults.
The organisation has also sought permission for companies that do not have bonded warehouses to open back-to-back LCs.
