Textile and apparel sector wants spl credit support
FE Report | Friday, 20 February 2015
Stakeholders of the country's textile and apparel sector have asked for providing special credit support and enhancing the existing cash incentive to help exporters recoup their losses caused due to the prevailing political stalemate.
Their other demands included suspension of interest on 'forced loan' during the period and transfer of all other credits into a blocked account for two years without any interest.
They also sought 35 per cent reduction of insurance premium to safeguard trade and business during the current situation and fixing of lorry risk insurance rate at 0.02 per cent.
The demands were placed at the first meeting of a committee, which was formed earlier to review the impact of the ongoing political turmoil and seek necessary measures and support from the government to this effect.
The meeting was held Thursday at the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) headquarters in the city. Abdus Salam Murshedy, president of the Exporters Association of Bangladesh (EAB), presided over the meeting attended by its 21 other members.
"We request the authorities concerned for immediate release of cash incentive and to provide us a special credit so that exporters can pay the workers timely," Mr Murshedy added.
The committee would prepare a list of their demands that were made by the members and send it to the concerned government authorities next week, he added.
Their demands also included enhancement of cash incentive for new market exploration to 5.0 per cent from the existing 3.0 per cent and also provision of the same benefit for the exports to the EU market to be competitive there.
"We are losing our competitiveness due to the devaluation of Euro against US dollar," Mr Murshedy said demanding cash support for the market as most of the exports are destined to the EU.
Replying to a question, he said exporters are making costly air shipment facing discount or deferred payment due to the ongoing political situation.
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