The Bangladesh Bank has released Taka 886 crore (US $ 72.78 million) in export earnings through two liquidity-strapped banks, allowing nearly 250 garment factories to pay wages and allowances for August and September, according to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
In a statement, BGMEA said the central bank facilitated the release of funds through Exim Bank and Social Islami Bank Limited (SIBL) to ease the ongoing wage crisis in the sector.
The association noted that several banks facing acute liquidity shortages had been unable to disburse export proceeds, disrupting regular operations and leaving factories struggling to pay workers on time.
“Bangladesh Bank has released export proceeds through two banks to enable nearly 250 garment factories to pay workers’ wages and allowances for two months,” BGMEA Vice President Shehab Udduza Chowdhury told The Business Standard.
Industry insiders said despite the inflow of export earnings, at least five troubled banks were unable to settle back-to-back letters of credit or release the exporters’ share, pushing manufacturers into financial distress.
The crisis prompted BGMEA leaders to meet with the central bank governor on 26 August to seek urgent intervention.
The garment sector, which employs over 4 million workers and earns more than 80% of Bangladesh’s export income, has been under increasing pressure due to global demand fluctuations and domestic banking woes.
