FBCCI asks for loan moratorium facility extension
The FBCCI also demanded a 40% increase in the working capital loan limit
The Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) has demanded that the loan moratorium facility be extended till 30 June this year in order to run the pandemic-hit businesses smoothly.
The FBCCI also demanded a 40% increase in the existing working capital loan limit and requested the Bangladesh Bank governor to give instructions to the commercial banks in this regard.
FBCCI President Jasim Uddin made the demands in two separate letters sent to Bangladesh Bank Governor Fazle Kabir on Thursday.
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In the letter regarding the loan moratorium, the FBCCI president said the Covid-19 situation has not become completely normal yet. The pandemic situation still exists in different parts of the world which is affecting the trade and economic activities of the country.
In addition, due to the situation in Russia and Ukraine, the prices of raw materials in the international market and shipping costs are increasing constantly.
"Rising raw material prices, and shipping and other costs have adversely affected the country's international trade. In this situation, due to the huge economic pressure on the traders, it is not possible to repay the loan installments on time. In the interest of keeping business activities normal, we are requesting to extend the loan moratorium facility till 30 June," said the letter.
In the letter regarding increasing working capital loan, he said, "Both the importers and the exporters are unable to conduct their businesses smoothly due to the constant increase in the prices of raw materials and other commodities in the international market."
"We are requesting at least a 40% increase in the existing working capital loan limit to keep the economic activities running," said the FBCCI.
Due to the Covid-19 pandemic, no one was declared a loan defaulter in 2020 for not repaying their loans. In 2021, the central bank gave the borrowers a chance to avoid becoming loan defaulters by repaying only 15% of the amount they were supposed to repay the banks. That facility was cancelled at the beginning of this year.
