Exporters’ repayment period likely to extend up to 5yrs

Ministry of Commerce has urged the Finance Division to take necessary measures in extending the repayment period of exporters’ loan taken from stimulus package to give salaries of workers amid Covid-19 pandemic.

Assistant Chief of Commerce ministry Shamima Akter sent a letter to the Senior Secretary of Ministry of Finance Abdur Rouf Talukder on Sunday to take necessary steps for extending the grace period of payment from six months to one year and extending duration of 18 instalments in two years to 60 instalments in five years. An intra-ministry meeting was held on October 5 at the Ministry of Commerce regarding incentive for exporters during coronavirus pandemic. 

An official of the Ministry of Commerce said the garment exporters are now facing immediate impact of the second wave of Covid-19 pandemic. As a result, they deserve the relaxation in repayment period. Exporters are facing huge problems in sending orders to the European Union countries as different states therein have imposed lockdown, the official also said.

Former Advisor of International Monetary Fund (IMF) Dr Reza Kibira said, "It is a good decision from the government to extend the duration of payment of garment businessmen to for several years as the international health crisis may prevail for the next two years.” “It may not be extended for the next five years instead of two years,” he said appreciating the garment owners who have raised enough din to make the garment sector a priority above everything else. However, Reza Kibira, pointed out the inherent contradictions within the demands of the garment owners for taking salary support with public money.

First Vice President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Mohammad Hatem said the decision of extending the payment period of exporters’ loan has been kept pending for two weeks. The extension will ease the financial crisis of the exporters, he also said.

On April 2, Bangladesh Bank issued a circular regarding disbursement of Tk 5000 crore in cash incentive for the payment of the salaries of factory workers specially for local garment exporters. Later, the government for the third time declared another cash incentive worth Tk 3,000 crore from taxpayers' pockets as a soft loan for the export industries mainly garments for paying workers' salaries.

The total amount of money taken as support from the government exchequer for the garments sector stands at Tk10,500 crore which is twice of the original stimulus package.

ask/wi