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Businesses demand postponement of loan installments till June 30, 2023

BTJ Desk Report
Businesses demand postponement of loan installments till June 30, 2023

The businesses of the country have asked further for concessions in the payment of bank loan installments.

They also demanded the postponement of the December installment of this year till June 30, 2023, according to the media reports.

They demanded it while met the Governor of Bangladesh Bank Abdur Rauf Talukder on Monday.

Moreover, they have also made several demands including reducing the margin of import LCs, extending the term of EDF loans, providing dollar support from reserves for import LCs, keeping the value of the dollar equal in both import and export.

The spokesperson of the central bank confirmed that the governor has also assured to look into the demands of the business leaders positively, media reported.

Md Jashim Uddin, president of the Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) president led the businesses in the meeting with the central bank governor.

FBCCI President Jashim Uddin told the media that Bangladesh Bank has given a discount on the LC margin for the import of daily necessities for the upcoming month of Ramadan.

“We see this as a positive. We also requested the central bank to look positively at the opening of LC. If necessary, we asked to stabilize the matter by opening an LC even with dollar assistance from the reserve,” he added.

FBCCI president said that due to gas and electricity crisis production in the industrial factories of the country is being disrupted and the gas and electricity crisis has not ended in the country yet.

The export sector has also suffered as industrial production has been disrupted. In many cases, it is difficult to pay the wages of workers in factories.

“In this situation, we have requested to extend the December loan installment till June 2023. We have demanded that the businessmen should not default on their loans till June 30,” he added.

He also said that they have demanded to extend the loan period taken from the Export Development Fund (EDF).

He also said that the current situation of Bangladesh is worse than Covid. The price of every raw material has gone up. The negative impact of the increase in the price of fuel has been felt in all sectors.

“Due to the dollar crisis, the government is unable to import fuel oil. Due to lack of gas pressure we are not able to run the factory. If we can’t run the factory and can’t import raw materials through LC, how can we pay the bank loan installment?,” he added.

Noting that Bangladesh is not in a good position economically, Jasim Uddin said, “policy support is needed in paying off bank loans.”

Business leaders also urged the governor not to lift the maximum 9% interest cap on loans.


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