Accessory business owners, integral to the garment industry as indirect exporters, are grappling with a myriad of banking restrictions and complexities that are impacting their operations.
Key issues highlighted include delays in receiving Letter of Credit (LC) payments, short validity of Export Permissions (EXP), blockage of Export Development Fund (EDF) access, additional costs for credit reports from third parties, and the adverse effects of currency exchange rate fluctuations on both imports and exports.
In light of these challenges, leaders from the Chittagong Garments Accessories Association (CGA) have formally approached the Bangladesh Bank (BB), the central bank of the country, for intervention.
During a recent meeting at the BB Secretariat, they presented their concerns to BB Governor Dr. Ahsan H. Mansur, who has assured garment accessory business owners that their issues will be addressed promptly, says a press release of CGA.
The accessory sector contributes significantly to the national economy, generating approximately US $ 8 billion in exports annually. The CGA reported that around 300 business owners in Chittagong, along with others nationwide, are feeling the strain of these banking complications.
Apparel Resources adds: Business leaders expressed that the delayed payments on back-to-back LCs have placed them under considerable financial pressure, with many banks imposing overdue interest and additional charges on outstanding loans, thereby escalating costs.
During the meeting, the accessory business owners emphasised the need for banks to eliminate unnecessary discrepancy charges and urged for swift action to alleviate their financial burdens.
Besides BB Governor, the gathering included notable figures including BB Executive Director Saiful Islam, CGA Vice President and Managing Director of Britannia Level Limited Jamil Ahmed, and other key representatives from the industry.
