Dhaka – Referring to recent decline in readymade garment (RMG) export due to recent political unrest, leaders of the sector and its backward linkages on Tuesday demanded special incentives like special P.C or Baisalam, term loans without interest and halting of loan classification for certain periods.The demands were raised at a meeting between the RMG, textile exporters and the representatives of banking institutions at the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
Speaking on the occasion, BGMEA president Atiqul Islam besides the obstruction of the Dhaka-Chittagong transportation, the recent political unrest has also led to the cancellation of export orders by the buyers.
“The severity can be understood by the decline of export growth to only 2.9 percent in October, against the recent average of 13 percent growth. The buyers are shifting orders from the country because of the political situation,” he said.
The RMG exporters as well as the textiles importers are passing through a tough time with their pending and cancelled exports at the political backdrop and it will become tougher to continue with the business if the existing time-restriction for the loan classification is not extended at least from the fourth quarter (Sept-Dec) in 2013, he said.
Atiqul urged the bankers to come up with a package of special PC or BAISALAM (advance payment with the delivery delayed until sometime in the future) adjustable within next two years.
He also demanded that block, term loans be facilitated to the RMG and backward linkages without interest for the next two years.
Bangladesh Association of Bankers (BAB) chairman Nazrul Islam Mazumder noted that the health of the banking institutions in the country is largely dependent on the health of the largest export earning sector, RMG.
He said all the demands of the business leaders in the sector are supportable, but recommended lowering of the duration of the facilities placed to the table by the exporters.
Besides, he recommended for the formation of a united delegation comprising the RMG exporters and the bankers to persuade the Finance Minister and the Bangladesh Bank governor to take steps so that the central bank makes adjustments to the relevant banking rules.
Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) president Kazi Akram Uddin Ahmed said, “It’s not only the biggest exporting sector of the country, but also all the businessmen, particularly those who own the SMEs (small and medium enterprises) who are largely affected by the recent political violence.”
Banks should also think about giving similar supports to the SMEs as the supports demanded by the RMG sector, he added.
Akram Uddin also called on all the businessmen to take part in the countrywide white flag-hoisting programme called on by FBCCI on December 15 to protest the recent political violence.
The meeting was also attended by Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) president Salim Osman, Association of Bankers Bangladesh (ABB) chairman Nurul Amin, Bangladesh Textile Manufacturers Association (BTMA) president Jahangir Al Amin, former presidents of BGMEA Shafiul Islam Mohiuddin, Abdus Salam Murshedi, Anisul Haque and Anisur Rahman Sinha.- UNB
