Bangladesh's businesses seek loan-repayment moratorium till December because of "volatile" business ambience globally amid the war in Europe and resultant standoff in the West.
The country's apex trade body placed the request, in a package of economic-recovery recommendations, with the central bank Tuesday, as its leaders fear a spectre of another economic "recession".
A delegation of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) with the set of proposals, including suspension of loan classification until end of this calendar year, met with Bangladesh Bank (BB) Governor Fazle Kabir.
The FBCCI also proposed enhancing the size of export development fund (EDF) by nearly 43 per cent to US$10 billion from the existing $7.0 billion, in view of the prevailing trade situation.
The apex trade body also urged the central bank chief to form a special refinancing fund only to facilitate industrialization which they think is not possible with credits from bank deposits.
Emerging from the meeting, FBCCI president Md Jashim Uddin told reporters that the Russia-Ukraine war in the time of Covid-19 pandemic almost takes the global economy into another spell of "recession" enhancing business costs through badly affecting global supply chains.
Under such circumstances, he said, many buyers are making deferred payments that severely affect the industries here.
"So, we requested the governor to take measure to suspend loan classification until December 2022 to keep the overall business activities as usual."
The 14-member delegation of the apex trade body, at the same time, requested the central bank to raise the size of EDF (export development fund) to US$ 10 billion in place of the existing US$ 7.0 billion by considering factors like growing cost of raw materials.
The FBCCI president said they also recommended creating a special fund for long-term financing that would be vital to industries especially in post-LDC-graduation period.
"We propose to create the refinancing scheme with a certain amount of funds for long-term financing because using short-term deposits of the banks for industrial purposes is not viable for business," says the business leader.
The FBCCI also proposed raising the cash incentives to encourage the expatriate Bangladeshis to send their hard-earned foreign currencies through the formal channels.
An executive director and spokesperson for the BB, Md. Sirajul Islam, said the business leaders sought loan-moratorium facility till coming December and the central bank will take decision after analysing everything, including the status of the banks.
He said the FBBCI delegates demanded resumption of loan- rescheduling facility with 2.0-per cent down payment of loans for sectors badly affected by the pandemic.
"The central bank will analyse their demands before taking any decision," he adds.
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