Accessory business owners, who are the indirect exporters of the garment industry, are facing various banking restrictions and complexities. Despite exporting goods, they are encountering problems such as not receiving LC payments on time, short validity of EXP (Export Permission), blocking of EDF (Export Development Fund), additional costs for obtaining ‘credit reports’ through third parties, and currency exchange rate fluctuations for imports and exports. They are facing at least five different issues.
To address these problems, the leaders of the Chittagong Garments Accessories Association (CGA) have sought intervention from the Bangladesh Bank. During a meeting at the Bangladesh Bank Secretariat on Wednesday, they presented these issues to Governor Dr. Ahsan H. Mansur. The CGA press release states that the Bangladesh Bank has promised to resolve the business owners’ concerns quickly.
Accessory business owners operate as indirect exporters in the garment industry. All import-export transactions, including LCs and payments, take place through banking channels. This sector generates at least 8 billion dollars in exports annually.
The CGA has reported that at least 300 business owners in Chittagong, along with others across the country, are being affected. They have requested Bangladesh Bank’s intervention to resolve these issues. During the meeting, business owners explained that due to the delayed payment of back-to-back LCs, they are under extreme financial pressure. Many banks are charging overdue interest or interest on outstanding loans once the designated time period has passed, making it very costly for the business owners. They have urged banks to take swift action on this matter.
Additionally, they made a special request for banks to stop unnecessary discrepancy charges. The meeting was attended by Bangladesh Bank Governor Dr. Ahsan H. Mansur, Executive Director Saiful Islam, CGA Vice President and Managing Director of Britannia Level Limited Jamil Ahmed, General Secretary and Managing Director of ABS Cotton & Accessories Industries Mohammad Belal, Joint General Secretary and Deputy Managing Director of NTS Limited Mohammad Nasir Uddin, Director Mohammad Mahmud Ahsan Tito, and Mohammad Enamul Haque, among others.
