Apparel makers have now sought 36 instalments instead of the existing 18 months to repay stimulus package loans meant for meeting workers' wages.
On August 22, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) wrote to the central bank and finance ministry again to extend the repayment tenure to 36 months.
It also urged the government not to classify any of their bank loans until this December and demanded rescheduling facility if anyone fails to repay on time. To offset the impact of Covid-19, garment industry received Tk 105 billion from the government to pay workers four months' wages beginning from April 2020.
The cash already disbursed required the factories to clear their debt in 18 equal instalments within two years with a grace period of six months.
The grace period has been extended for another six months beginning from last March.
The letters, signed by BGMEA president Faruque Hassan, claim manufacturers have been exporting RMG products despite incurring losses mainly to retain workers and foreign buyers during the crisis period.
As a result, buyers' confidence has increased resulting in a rise in their work orders, he says.
"But it will take some more months to get the payments against those orders. Entrepreneurs will also face liquidity crisis for the time being."
The BGMEA president claims entrepreneurs are in uncertainty over the future of the industry, investment situation and wage payment of workers.
"In such a crisis situation to pay workers wages, the number of loan repayment instalments need to be increased," Mr Hassan said demanding 36 instalments from existing 18.
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