HSBC Bangladesh today announced wide-ranging support measures to provide immediate assistance to its Commercial Banking Textile and Garments customers impacted by Covid-19 and the related economic impact. The Bank will work to ease cash flow pressures faced by businesses and help customers to tackle market uncertainties, including disruptions to their supply chains.
Under these support measures, HSBC will provide an up to 90 day extension of import liability maturing in next three months where export shipments are delayed. The Bank will also provide special short term loans up to one year with principal moratorium for four months which can be used for the purpose of supporting workforce costs – including wages, bonus, utility and/or other overhead payments. It will allow three months moratorium against existing Term Loans as well.
To ease the pressure on Bangladeshi economy, HSBC has also announced trade relief in the form of waiver of Letter-of-Credit (LC) commission and margin requirements for the import of medicine, medical equipment and accessories used to treat COVID-19. Customers facing delivery disruptions owing to late shipment and late presentation of documents will have amendment fees on LCs waived.
HSBC recognises that many customers will operate in a virtual or business continuity work environment where conventional paper flow is not possible. In these circumstances, the Bank will provide support to customers to onboard onto HSBC’s digital platforms to enable the flow of trade to continue. Urgent trade finance applications from customers to the platform will also be expedited.
Francois de Maricourt, CEO, HSBC Bangladesh, said: “We are going through challenging times in Bangladesh and are committed to continue our support to the local community to the best of our capabilities. We empathise with our customers who have to deal with the turbulence caused by this unforeseeable outbreak and we are taking actions to help alleviate their financial burdens.”
Md Mahbub ur Rahman, CEO designate, HSBC Bangladesh, said: “We are increasing our support to the business community to navigate this difficult journey together. Today’s announcement is another testament of our commitment to the customers in Bangladesh.”