Late payment for L/Cs

SOME businessmen in our country are habitually late in settling payment of their L/Cs in time and also of the interest due to late payment. The Bangladesh Bank should strictly monitor the situation and ensure that payments for L/Cs or interest for late payments are made on time. This will greatly help us overcome the liquidity crisis in our banks and more importantly it will enable the banks to make further investments.

Our image outside the country is also tarnished due to frequent late payment of L/Cs. Some businessmen banking with the state-owned banks have a bad record of making L/C payments late. Such irregularity of L/C payment has to be sorted out to establish discipline in our financial sector. It is therefore important that all banks of the country ensured that payments against L/Cs were disbursed in time so that an atmosphere of trust prevailed in the business sector. If discipline is established, many more entrepreneurs will be encouraged to invest.

Akmal Hossain

Narayanganj