The President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Khandoker Rafiqul Islam, has requested soft loans from the government to help the industry recover from losses caused by recent operational disruptions. These disruptions were due to a student-led mass uprising, general holidays, and severe flooding. The request was made during a meeting with Dr. Salehuddin Ahmed, the Finance and Commerce Adviser to the interim government, at his office in the Economic Relations Division (ERD).
Rafiqul Islam explained that the BGMEA is seeking a soft loan facility that could be provided within a month and repaid over a year. He also discussed the need to revisit the current loan classification system, which now considers loans as classified if an entrepreneur misses three consecutive installments. The BGMEA is advocating for this to be extended to six installments, as it was previously, to provide more flexibility during the current challenging period.
The Finance Adviser was reportedly positive about the request and assured the BGMEA of his support. The BGMEA president emphasized that cooperation between the government and the industry is crucial for a swift recovery and expressed confidence that the sector could quickly regain its momentum if given the necessary support. He also highlighted the continued trust and confidence of foreign buyers in Bangladesh's garment sector, suggesting that more business could be directed to the country as a result.
The BGMEA has estimated that the disruptions over the past 45 days have significantly impacted the sector, with enterprises unable to operate at full capacity for 15 to 16 of those days. To address these challenges, the BGMEA has requested soft loans amounting to approximately Taka 1,800 crore to Taka 1,900 crore.
Rafiqul Islam also noted that there are no issues with the formation of a new BGMEA committee, as the Ministry of Commerce has advised the current leadership to continue steering the sector forward. The BGMEA is scheduled to meet with international buyers and brand forums to discuss the current situation further.
Former BGMEA presidents Quazi Moniruzzaman and SM Fazlul Hoque, along with other industry leaders, were also present at the meeting.
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