Country's foodstuff importers and suppliers have requested the central bank to waive interest on bank loans until this December to help them offset their losses and survive during the ongoing Covid-19 pandemic.
They have also made the request not to adversely classify existing loans taken out by these traders to December, 2021.
Some 115 traders and importers registered with Bangladesh Foodstuff Importers and Suppliers Association (BAFISA). It was founded in 2019 to promote import opportunities and co-operation between importers and suppliers in the country.
BAFISA has recently written a letter to the Bangladesh Bank (BB) for considering the issue and forwarded it to the Prime Minister's Office, finance and commerce ministries, National Board of Revenue and the Federation of Bangladesh Chambers of Commerce and Industry.
The sector had been facing multifarious problems including regular payment of value added tax (VAT) and tax as well as different restrictions due to the spread of coronavirus, industry insiders said.
The Covid-19 has put a negative impact on the sector. The pandemic has posed severe risk and challenge for the trading area.
Besides, the cash flow and the financial capacity of the importers and suppliers declined, they mentioned.
As a result, it was very difficult for them to continue paying loan instalments including interest. Altogether, the sector was going through tough times since February 2020, they added. They have sought waiver of interest on the loans which were regular in payment until January, 2020.
They could not provide the volume of loans received from the banks by them.
A central banker said the proposal is now under review.
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