BB asks banks to make timely payment of export bills
Siddique Islam | Monday, 2 June 2008
The central bank has asked the commercial banks to make timely payment of export bills to help local exporters strengthen their business activities, officials said.
The central bank took the move against the backdrop of financial crisis faced by local exporters -- particularly accessories manufacturers -- mainly due to the lengthy time taken by commercial banks in clearing the export bills for payment.
At least 70 per cent of the export bills are held up by the concerned commercial banks showing various reasons including document discrepancies, local exporters said.
Such export bills are settled within one to three months normally but in some cases it takes upto seven months, the exporters alleged.
Around 700 unpaid export bills worth US$35 million have been pending until March this year thus increasing the costs of doing business, according to the central bank statistics.
On Sunday, the Bangladesh Bank (BB) asked the commercial banks to stop harassing and making payment of export bills to the local exporters and provide them all facilities in line with the existing rules and regulations.
The central bank issued a circular in this connection on the day and asked the commercial banks for taking more care in providing necessary support to the exporters.
"We have asked the banks to pay the export bills to the local exporters without any harassments," a BB senior official told the FE, adding that the central bank is receiving at least five complaints each working day for non-payment of such bills.
"We don't expect such harassment that is ultimately hampering the country's export earnings," the BB official added.
The Bangladesh Corrugated Carton and Accessories Manufacturers and Exporters Association (BCCAMEA) welcomed the BB's latest move instructing the commercial banks to stop harassment and make payment of export bills to the exporters.
"We thank the central bank for issuing such instructions to provide all necessary support to the local exporters," President of the BCCAMEA Safiullah Chowdhury told the FE.
The BCCAMEA is the prime organisation to safeguard the interest of carton and accessories manufacturers and exporters of the country. It represents all the export oriented corrugated carton and accessories manufacturers of the country.
"The local exporters will be benefited if the banks carry out the BB's instructions properly," Mr. Chowdhury said, adding the sub-sector earned nearly US$1.0 billion through exporting their products in the last year.
On the other hand, the commercial banks admitted that they have delayed payments to the accessories exporters in some cases on the basis of requests from their clients who are the principal exporters
"The clients often requests us to delay payments as sometimes the products supplied by the accessories manufacturers are not as per specification or specimen," a senior official of a private commercial bank told the FE.
The central bank took the move against the backdrop of financial crisis faced by local exporters -- particularly accessories manufacturers -- mainly due to the lengthy time taken by commercial banks in clearing the export bills for payment.
At least 70 per cent of the export bills are held up by the concerned commercial banks showing various reasons including document discrepancies, local exporters said.
Such export bills are settled within one to three months normally but in some cases it takes upto seven months, the exporters alleged.
Around 700 unpaid export bills worth US$35 million have been pending until March this year thus increasing the costs of doing business, according to the central bank statistics.
On Sunday, the Bangladesh Bank (BB) asked the commercial banks to stop harassing and making payment of export bills to the local exporters and provide them all facilities in line with the existing rules and regulations.
The central bank issued a circular in this connection on the day and asked the commercial banks for taking more care in providing necessary support to the exporters.
"We have asked the banks to pay the export bills to the local exporters without any harassments," a BB senior official told the FE, adding that the central bank is receiving at least five complaints each working day for non-payment of such bills.
"We don't expect such harassment that is ultimately hampering the country's export earnings," the BB official added.
The Bangladesh Corrugated Carton and Accessories Manufacturers and Exporters Association (BCCAMEA) welcomed the BB's latest move instructing the commercial banks to stop harassment and make payment of export bills to the exporters.
"We thank the central bank for issuing such instructions to provide all necessary support to the local exporters," President of the BCCAMEA Safiullah Chowdhury told the FE.
The BCCAMEA is the prime organisation to safeguard the interest of carton and accessories manufacturers and exporters of the country. It represents all the export oriented corrugated carton and accessories manufacturers of the country.
"The local exporters will be benefited if the banks carry out the BB's instructions properly," Mr. Chowdhury said, adding the sub-sector earned nearly US$1.0 billion through exporting their products in the last year.
On the other hand, the commercial banks admitted that they have delayed payments to the accessories exporters in some cases on the basis of requests from their clients who are the principal exporters
"The clients often requests us to delay payments as sometimes the products supplied by the accessories manufacturers are not as per specification or specimen," a senior official of a private commercial bank told the FE.