Central Bank Lowered Interest Rate To Ease Bangladesh Clothing Enterprises Dilemma

　　 Central Bank of Bangladesh (BB) The interest rate of 270 ailing garment enterprises dropped from 15% to 8%.

After a meeting between BB executive director Jahangir Alam (Jahangir Alam) and leaders of Bangladesh garment manufacturers and Exporters Association (BGMEA), BB President Atiur Rahman informed that even if the interest rate was reduced to 8%, the owners would also assume 5%, and the rest of the interest rate would be subsidized by the government.

Mr. Alam said that the BB initiative would help troubled garment owners to get loans at a rate of 8%, thereby helping businesses recover from heavy losses.

He further revealed that among the 280 companies, 88 were owed to private commercial banks, while the remaining 182 companies owed money to public commercial banks.

according to Clothing export The president of BB agreed to raise the export development fund from the current US $400 million. However, he did not disclose the number of newly upgraded export development funds.

In addition, the central bank also reduced the current 120 day export repurchase time, in order to allow the country to withdraw foreign exchange in a shorter time. Mr. Alam said that because of the long time for foreign exchange, Bangladesh still has 2 billion dollars to be withdrawn.

He further said that BB will soon provide second stimulus packages for garment exporters to balance their business backwards due to the global economic slump.

However, he did not disclose any details of the second package stimulus plans.