BB asks banks to disburse 70pc of cash subsidy against exports before audit
Thursday, 10 September 2009
FE Report
The central bank has asked the commercial banks to disburse 70 per cent of cash subsidy against exports before auditing while the rest amount will be cleared after final inspections.
The country's businessmen hailed the central bank's move saying that it would help the export-oriented sectors to clear wages and bonus to their workers and employees ahead of the Eid festival.
Under the new instructions, the banks are empowered to release the large portion of cash subsidy immediately after receiving preliminary documents of exports.
"We've issued the instructions in line with the stimulus package, announced by the finance minister on April 19 this year," General Manager of the Foreign Exchange Policy Department of the Bangladesh Bank (BB) Khandaker Khalidur Rahman told the FE Wednesday.
The finance minister has said 70 per cent of cash subsidy will be disbursed immediately after receiving preliminary documents while the rest amount will be cleared after the final inspections.
The central bank issued a circular in this connection Wednesday asking the commercial banks to follow the new instructions relating to disbursement of cash subsidy to exporters.
The BB will settle reimbursement claims, after receiving those from the commercial banks concerned within the next working day, Mr. Khalidur Rahman added.
The banks have been instructed to preserve necessary documents against disbursement of cash subsidy for BB's surprise visit.
"If any disbursement of cash subsidy is made without maintaining proper rules and regulations, the BB will deduct the amount with interest from the concerned banks' deposit with the central bank," the circular said, adding that punitive measures would also be taken against the officials concerned.
Acting President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Abul Kashem Ahmed welcomed the BB's move saying that the export-oriented sectors would be benefited from the new instructions relating to cash subsidy disbursement.
"Such a move ahead of the Eid festival would certainly help the export-oriented sectors to pay wages and festival allowances to their workers and employees," Mr. Ahmed said.
Exporters also welcomed the BB's latest move, saying that such measures would help the export-oriented garment and knitwear sectors to pay wages and bonus to workers and employees before the Eid festival.
The central bank has asked the commercial banks to disburse 70 per cent of cash subsidy against exports before auditing while the rest amount will be cleared after final inspections.
The country's businessmen hailed the central bank's move saying that it would help the export-oriented sectors to clear wages and bonus to their workers and employees ahead of the Eid festival.
Under the new instructions, the banks are empowered to release the large portion of cash subsidy immediately after receiving preliminary documents of exports.
"We've issued the instructions in line with the stimulus package, announced by the finance minister on April 19 this year," General Manager of the Foreign Exchange Policy Department of the Bangladesh Bank (BB) Khandaker Khalidur Rahman told the FE Wednesday.
The finance minister has said 70 per cent of cash subsidy will be disbursed immediately after receiving preliminary documents while the rest amount will be cleared after the final inspections.
The central bank issued a circular in this connection Wednesday asking the commercial banks to follow the new instructions relating to disbursement of cash subsidy to exporters.
The BB will settle reimbursement claims, after receiving those from the commercial banks concerned within the next working day, Mr. Khalidur Rahman added.
The banks have been instructed to preserve necessary documents against disbursement of cash subsidy for BB's surprise visit.
"If any disbursement of cash subsidy is made without maintaining proper rules and regulations, the BB will deduct the amount with interest from the concerned banks' deposit with the central bank," the circular said, adding that punitive measures would also be taken against the officials concerned.
Acting President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Abul Kashem Ahmed welcomed the BB's move saying that the export-oriented sectors would be benefited from the new instructions relating to cash subsidy disbursement.
"Such a move ahead of the Eid festival would certainly help the export-oriented sectors to pay wages and festival allowances to their workers and employees," Mr. Ahmed said.
Exporters also welcomed the BB's latest move, saying that such measures would help the export-oriented garment and knitwear sectors to pay wages and bonus to workers and employees before the Eid festival.