Traders demand quick release of financial incentives

The business community demanded quick release of funds from incentive packages announced for hard-hit sectors and stakeholders as soon as possible. They too emphasised on the proper implementation of the incentives.

These demands were made at a discussion meeting organised by the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) on Wednesday. FBCCI President Sheikh Fazle Fahim mediated the online meeting which was joined by business leaders and managing directors of various public and private banks.

“The banks should play a proactive role by adopting easier ways to help the country’s cottage, micro, small and medium enterprises get their share from the package of Tk 20,000 crore announced by Prime Minister Sheikh Hasina,” Sheikh Fazle Fahim said.

Chairmen and managing directors of various state-owned and private banks, former FBCCI presidents, FBCCI directors and economists participated in the programme.

Fahim stressed the need for engaging the FBCCI members -- all chambers and associations—to provide small shops, clinics and hospitals, women entrepreneurs and media houses with stimulus funds.

The boss of the apex business body requested the Association of the Bankers Bangladesh (ABB) to expedite the process as the coronavirus crisis has put various sectors under serious strains.

Fahim said the government-announced stimulus package was “targeted and focused” but now it was the responsibility of the banks to do the rest. “The banks must come forward to quickly execute the plans for stimulus package in a bid to help the national economy survive.

“The decision to provide food assistance to 4 crore people, 700 crore taka for the workers in the informal sector, 20,000 crore for the SME sector, 30,000 crore for the large sectors, 5,000 crore for the export-oriented sector, 5,000 crore for the agriculture sector is a brave one.” Now the banks should shoulder the responsibility in the interest of the national economy,” he said.

Welcoming the Bangladesh Bank’s various steps to resolve the liquidity crisis in the banking sector, Fahim said the central bank’s decisions have strengthened the base for the banks to disburse the stimulus money in a disciplined manner.

“For the Bangladesh Bank’s steps the banks’ liquidity is supposed to increase up to 46,000 crore and it is supposed to be 70,000 crore with Export Development Fund (EDF) while through the statutory liquidity ratio (SLR) there should be an excess fund of 1 lac crore taka. Under the stimulus package, the facility for subsidy for interest and matching fund option would benefit the banks,” the FBCCI chief observed.

Fahim also said if the country’s burgeoning informal sector can survive through the crisis with the contribution from the state-owned and private banks this informal sector will be integrated into the formal sector one day.

“This will be a win-win situation, and the banks will also benefit enormously through this inclusion,” he said.

FBCCI’s former president and Member of Parliament Shafiul Islam Mohiuddin said steps should be taken so that the entrepreneurs, especially the smaller ones, do not face troubles in getting stimulus money for documentation.