Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has demanded low cost loans to pay wages for next four months as they were facing fund shortage due to failure of shipment caused by the political unrest.
The loans could be given through creating a special packing credit (PC), they said.
BGMEA President M Atiqul Islam demanded the loan for a period between November and February next to be adjusted by next two years.
He said textile, garments and backward linkage industry should not be classified in next two years from Q4 of 2013. He also appealed to block the term loan, project loan, loan against trustee receipt, Murabah Post Import (MPI) and installment without any interest for next two years.
Atiq made the appeal at a views exchange meeting with owners of private and state-owned commercial banks and insurance companies in Dhaka yesterday, aimed at discussing the current scenario of RMG sector.
“Their demands are not unrealistic. If possible, I would do this for the sector,” said Bangladesh Association of Banks (BAB) President Nazrul Islam Mazumder. “But there are limitations as the bankers cannot do, what they want.”
The banks’ managing directors have lots of limitations as they cannot waive interest of a person or can make a person classified as there are some guidelines under which they are controlled, he added.
The BGMEA president said they would take decision after having meeting with the MDs and chairmen and if the finance ministry and Bangladesh Bank allow us to do that.
“We are becoming sick because of sick politics. Please, shun the confrontational politics and let us do business for the sake of the country.” FBCCI President Kazi Akramuddin Ahmed urged banks to do everything for the sake of the RMG sector, even making low profits. He said: “We will sit with the proposal and try to do our best.”
“The problem is political unrest, which is going on since last year and it left everyone in trouble. It would be very tough to overcome the deadlock if we do not work together,” said former BGMEA President Anwarul Alam Chowdhury Parvez.
Urging his fellow Parvez said “Come forward and give tremendous pressures to the political parties. We need political stability to do businesses,” he advised Atiq to mount pressure from the BGMEA.
“We cannot negotiate prices with buyers and cannot produce products in the factory, but wages has been increased. How we pay the wages of the workers?”
The businessmen sought pledges from the political parties that they would avoid confrontational politics in future and the promise should be made in their election manifestoes, said Shafiul Islam Mohiuddin, former BGMEA President.
“If the businessmen took to the streets, you (the politicians) would not get the chance to sit in the parliament,” said AKM Salim Osman, BKMEA President.
A garment owner demanded Bangladesh Bank to relax the guideline of loan classification for a certain period to give a cushion to the country’s readymade garment sector.
The apex trade body for the apparel sector also demanded insurance coverage from factory to Chittagong port and also urged the insurers to set a little charge as premium.
Meanwhile, a delegation from BGMEA, BKMEA and BTMA is scheduled to meet Finance Minister AMA Muhith today to place their demands.
Earlier on Monday, Muhith sat with leaders of Bangladesh Association of Banks (BAB) to be informed about the banking sector and what the government banks could do to solve the RMG sector problems created due to the political unrest.
