Beximco Group, a well-known conglomerate in the country, has presented the government with a five-point plan that aims to preserve commercial activities, particularly in its export-oriented textile and clothing businesses, and protect the jobs of 40,000 workers.
The top request on its list is to move all outstanding debts into an interest-free block account by 31st August 2024. The group has requested from the interim government and its lender, Janata Bank, a ten-year payback timeline in addition to a two-year moratorium on this responsibility.
The proposal for the revival of Janata Bank’s export-related credit facility was sent to the managing director by Osman Kaiser Chowdhury, managing director of Beximco. The similar draft letter has been sent to the advisors of the ministries of finance, home affairs, industry, labour, and employment, as well as the governor of Bangladesh Bank.
Among the other demands made by Beximco are the establishment of mandatory back-to-back letters of credit (LCs) against export LCs that have already been received and will be received in the future, a 10 per cent margin bill discounting facility against local suppliers of fabric and accessories, a 15 per cent margin packing credit facility against each export LC or order, and the release of the maturity amount (after deducting interest and charges) from the corresponding or related export proceeds.
Beximco requested that the Taka 65 crore wage payment scheduled for September be deducted and accumulated from the export revenues they have already received and would continue to receive through 6th October of this year, expressing anxiety over the anticipated wage payment.
“Taka 69.05 crore is required in order to cover our employees’ salaries for August,” the letter stated. “We have obtained a Taka 55 crore loan from Janata Bank and have contributed the remaining amount ourselves, which was designated for the clearance of imported raw materials.”
In the letter, Beximco hinted that there might be just two ways to combat the current circumstances. First, reducing staff and other relevant expenses to the point where the business can pay for them independently. Second, keep the workers, especially the employees, on board until the business breaks even.
Beximco has guaranteed that, within 120–150 days of the date of its disbursement, it will be able to return the proposed new loans from the export collections/proceeds.
