Issues within the jurisdiction of the central bank would be addressed promptly and effectively, he said.
The BGMEA delegation, led by its president Mahmud Hasan Khan, sought urgent policy support from the central bank to address multiple challenges being faced by the garment sector, according to domestic media reports.
The Bangladesh Bank governor has assured a BGMEA delegation that no application for cash incentives will remain pending and payments will be released within the month of claiming.
The delegation proposed raising the special cash incentive rate from 0.3 per cent to 1 per cent, raising the alternative cash support from 1.5 per cent to 2 per cent and raising SME incentives from 3 per cent to 4 per cent.
Though some banks have rescheduled loans, many factories are still facing shortages of working capital, making it difficult to keep production running and repay loans on time, Khan noted.
To safeguard the industry and encourage new entrepreneurs, BGMEA leaders urged the continuation and increase cash incentives under government policy support.
It proposed raising the special cash incentive rate from 0.30 per cent to 1 per cent, increasing the alternative cash support (in place of duty bond and duty drawback facilities) from 1.5 per cent to 2 per cent and raising incentives for small and medium enterprises (SMEs) from 3 per cent to 4 per cent.
The delegation warned that if incentive payments are not disbursed quickly and regularly, many factories may soon face closure, which could negatively affect the labour market.
It also proposed reducing the interest rate on packing credit to 7 per cent, increasing the pre-shipment credit refinance scheme from taka 50 billion to taka 100 billion and extending the tenure of the fund until 2030.
It further called for bringing export loan interest rates to single digits and ensuring easier credit access for SMEs.
Fibre2Fashion News Desk (DS)
