FBCCI for moratorium extension till June

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has placed several demands to the Bangladesh Bank against the backdrop of the ongoing economic crisis, including an extension of loan moratorium.

The forum of the country’s top business people has requested the central bank to extend the loan moratorium till June 30 next year as they still suffer due to the global economic crisis created by the Covid-19 pandemic and the Russia-Ukraine war.

They placed the demands during a meeting with the central bank governor, Abdur Rouf Talukder, on Monday. A delegation led by FBCCI President Md Jashim Uddin met the governor at the central bank headquarters.

After the meeting, Jashim told journalists the country’s economy and businesses are still in crisis even though the pandemic has subsided due to the price rise of raw materials and other essential commodities in the global market.

He said the business people could not repay loan instalments on time due to financial pressure.

“Considering the situation, we requested the central bank governor to extend the moratorium till June 30, 2023,” said Jashim.

The moratorium was first introduced in March 2020 amid the pandemic, enabling borrowers to avoid having their loans classified. The facility was extended several times till December 31, 2021.

The FBCCI president said the central bank relaxed the letter of credit (LC) margin for eight products ahead of Ramadan but “we need more products during the holy month because that accounts for 50 per cent of the business.”

Talking about making the opening of LCs smooth, he said the central bank should extend the USD support provided to banks from its reserves if needed.

There is a large gap in the USD rates for export earnings and LC opening and the FBCCI requested the central bank to reduce it, Jashim said.

The FBCCI also demanded an extension of the EDF loan repayment deadline from 180 to 320 days.

Replying to a question, Jashim said they had urged the central bank chief to not withdraw the interest rate cap because it would impact the business people.

Mezbaul Haque, the Bangladesh Bank executive director and spokesperson, said the central bank would consider the FBCCI demands and take steps accordingly.