The central bank has been urged to abolish the LC prohibition on banks under the management of S Alam Group by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). BGMEA leaders expressed this demand during a meeting with Bangladesh Bank Governor Dr. Ahsan H. Mansoor.
In addition, the BGMEA insisted that the Export Development Fund (EDF) not be reduced and that businessmen impacted by recent political instability be given a soft loan of Taka 3,000 crore.
Abdullah Hill Rakib, Senior Vice President of BGMEA said, Bangladesh Bank has recently informed that Export Development Fund (EDF) limit will be reduced. Traders are likely to suffer if the funding limit is reduced further. We have requested not to reduce the EDF limit at this time. The governor said that the EDF limit will not be reduced given our demands.
Meanwhile, BKMEA Vice President Fazle Shamim Ehsan said, we took three demands to the governor. These included the opening of LCs of 6 banks, the provision of a fixed amount of soft loans for businessmen and non-reduction of EDF funding. The governor showed a positive attitude on all three issues. Hopefully, the LC issue of six banks will be resolved within a few weeks.
Notably, Bangladesh Bank imposed restrictions on loan disbursement and LC of banks under the control of S Alam Group due to various irregularities, mismanagement, and corruption earlier.
