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RMG businesses to get policy support in export, import till March next year

Staff Correspondent | Published: 23:37, Jul 23,2020

 
 

The Bangladesh Bank on Thursday extended the time for a policy support it had offered for six months amid the outbreak of coronavirus to the country’s readymade garment and textile businesses against their export and import activities.

On March 19 this year, the central bank offered the policy support for six months ending on September 30 this year for all sorts of import and export trade by the apparel makers.

A BB circular issued on Thursday said that the support would remain valid until March 31, 2021.

The circular allowed the bankers to extend the period for realisation of the export proceeds by up to 90 days in addition to the stipulated four months’ timeframe from the date of shipment.

In March, the BB had allowed the banks to extend the period for realisation of the export proceeds by up to 60 days in addition to the stipulated four months’ timeframe from the date of shipment.

Other facilities, which were granted in March this year, would remain unchanged, the BB circular said.

The BB circular in March also extended the tenure for the EDF loans to six months from three months.

Under the circular, the exporters were also allowed to repatriate their export proceeds at up to 10 per cent discount price on the freight on board value.

Besides, the issuance period of back-to-back letters of credit opened under the supplier’s or buyer’s credit can be extended on banker-customer relationship by up to six months in addition to the permissible period of six months.

Regarding submission of the import bills of entry, the banks were allowed to extend the tenure of the bills by up to two months in addition to four months’ time from the date of payments.

Apart from the policy supports, the government has launched a number of stimulus packages for the businesses to recover the pandemic-hit economy.

The export-oriented industries received around Tk 7,700 crore from the government’s fund for the payment of workers’ wage for the month of April, May and June.

Besides, the disbursement of loans to the large industries has exceeded Tk 7,000 crore under the government’s Tk 30,000 crore in stimulus loans.

But the disbursement of loans to cottage, micro, small and medium entrepreneurs has remained very low — around Tk 250 crore as of June 30 this year.

The disbursement of loans for the farmers and low-income people from separate two stimulus packages has also remained dissatisfactory.

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