Business leaders want 15 months for deferred LC payments | The Business Standard
Skip to main content
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Get the Paper
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Sunday
July 20, 2025

Sign In
Subscribe
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Get the Paper
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
SUNDAY, JULY 20, 2025
Business leaders want 15 months for deferred LC payments

Economy

TBS Report
27 January, 2025, 10:50 am
Last modified: 27 January, 2025, 10:52 am

Related News

  • NBR officers should captain revenue authority, businesses tell finance adviser
  • Business leaders demand resolution to NBR deadlock today, warn of daily Tk2,500cr trade disruption
  • Businesses alarmed as NBR stalemate deepens
  • Business leaders decry ‘customs harassment’, demand urgent reforms
  • Cenbank directs banks to clear overdue LC payments

Business leaders want 15 months for deferred LC payments

They also want overdue period to be 9 months to consider a loan defaulted

TBS Report
27 January, 2025, 10:50 am
Last modified: 27 January, 2025, 10:52 am
Illustration: TBS
Illustration: TBS

Leaders of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), the country's apex trade body, have urged the central bank to extend the repayment period for deferred letters of credit (LCs) liabilities from six months to 15 months.

They made the demand during a meeting between a FBCCI delegation and Bangladesh Bank Governor Ahsan H Mansur yesterday.

At the same time, they recommended controlling inflation, stablising interest rates, maintaining normal flow of dollar supply, and policy support for involuntary defaulters.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

"A request has been made to keep interest rates stable to control inflation in order to maintain the competitiveness of Bangladeshi products and investment in the global economic situation," Md Hafizur Rahman, administrator of FBCCI, said after the meeting.

"We have asked for steps to be taken to gradually reduce the interest rate."

A loan becomes default after six months from the date on which the installment of the outstanding loan is scheduled to be paid, he said.

"It is heard that this period will be reduced to three months very soon. We have appealed to the governor, and proposed to increase the period from three months to nine months."

A senior official from the relevant department of the central bank said, "It is very difficult to extend the deferred LC period from six months to 15 months. In some cases, banks have to pay the foreign banks immediately, while in other cases, the time is six months."

He said in this case, there is a risk for the customer. "For example, the rate at which a customer imported the dollar may increase significantly at the time of payment. So, deferred LC for six months is reasonable."

Preferring not to be named, the managing director of a private bank said while extending the deferred LC period would provide some benefits to importers, there are several problems.

"If the LC amount is not received on time, the bank faces a cash flow crisis. In addition, the payment risk and risk premium of the importers also increase. Later, they have to face repeated problems to return this amount."

FBCCI Administrator Hafizur Rahman further said at the meeting, the central bank has been urged to initiate necessary steps to ensure a business-friendly environment in the country, including providing policy support to affected industries, helping entrepreneurs to cope with foreign exchange losses, paying export bills on time, and expanding special credit facilities for SMEs and the agricultural sector.

"In response to the FBCCI recommendations, the Bangladesh Bank governor said the bank is working intensively to ensure order in the financial sector."

The governor also called for support and cooperation of the business community for the sustainable development of the economy.

Regarding the overdue period for deferred LCs, officials of the relevant department of Bangladesh Bank said they are going to set the overdue period of loans at three months from April this year as per international norms. 

Though there may be a temporary increase in defaulted loans following the policy at banks, it is good for the future, they said.

The FBCCI delegation included its former president Mir Nasir Hossain, former vice president Abul Kashem Haider, former directors Abdul Haque and Gias Uddin Chowdhury, PRAN-RFL Group CEO Ahsan Khan Chowdhury, former BGMEA president SM Fazlul Haque, FBCCI Secretary General Md Alamgir, FBCCI general body members Zakir Hossain Nayon and Zakir Hossain.

Bangladesh / Top News

lc payment / business leaders

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Tarique Rahman. Sketch: TBS
    Tarique urges all to stay alert against election sabotage plot
  • Tottho Apas have been protesting in front of the National Press Club in Dhaka for months, with no headway in sight. Photo: Mehedi Hasan
    From empowerment to exclusion: The crisis facing Bangladesh’s Tottho Apas
  • Jamaat-e-Islami Ameer Dr Shafiqur Rahman spoke at the party's first national rally at Suhrawardy Udyan in the capital today (19 July). Photo: Rajib Dhar
    No extortion or corruption if Jamaat voted to power: Shafiqur at Suhrawardy rally

MOST VIEWED

  • Representational Photo: Collected
    Railway allocates special trains for Jamaat's national rally in Dhaka
  • Chief Adviser Muhammad Yunus and SpaceX Vice President Lauren Dreyer after a meeting at state guest house Jamuna on 18 July 2025. Photo: Focus Bangla
    SpaceX VP Lauren Dreyer praises Bangladesh's efficiency in facilitating Starlink launch
  • Dollar rate falling fast – what it means for the economy
    Dollar rate falling fast – what it means for the economy
  • Governments often rely on foreign loans. Russia’s loans covered 90% of the Rooppur Nuclear Power plant project's cost. Photo: Collected
    Loan tenure for Rooppur plant extended 
  • Representational image. Photo: Unsplash
    Mobile operators give 1GB free data to users observing 'Free Internet Day' today
  • Smuggled goods seized at Sylhet border on 18 July 2025. Photo: TBS
    BGB seizes smuggled Indian goods worth Tk6cr from Sylhet border areas

Related News

  • NBR officers should captain revenue authority, businesses tell finance adviser
  • Business leaders demand resolution to NBR deadlock today, warn of daily Tk2,500cr trade disruption
  • Businesses alarmed as NBR stalemate deepens
  • Business leaders decry ‘customs harassment’, demand urgent reforms
  • Cenbank directs banks to clear overdue LC payments

Features

Tottho Apas have been protesting in front of the National Press Club in Dhaka for months, with no headway in sight. Photo: Mehedi Hasan

From empowerment to exclusion: The crisis facing Bangladesh’s Tottho Apas

43m | Panorama
The main points of clashes were in Jatrabari, Uttara, Badda, and Mirpur. Violence was also reported in Mohammadpur. Photo: TBS

20 July 2024: At least 37 killed amid curfew; Key coordinator Nahid Islam detained

28m | Panorama
Jatrabari in the capital looks like a warzone as police, alongside Chhatra League men, swoop on quota reform protesters. Photo: Mehedi Hasan

19 July 2024: At least 148 killed as government attempts to quash protests violently

1d | Panorama
Illustration: TBS

Curfews, block raids, and internet blackouts: Hasina’s last ditch efforts to cling to power

1d | Panorama

More Videos from TBS

After Gopalganj, the reason why NCP is facing obstacles in Cox's Bazar?

After Gopalganj, the reason why NCP is facing obstacles in Cox's Bazar?

2h | TBS Today
What does Jamaat Nayeb Ameer Abdullah Taher say about reforms?

What does Jamaat Nayeb Ameer Abdullah Taher say about reforms?

2h | TBS Today
The tendency of central banks to buy gold is increasing worldwide.

The tendency of central banks to buy gold is increasing worldwide.

3h | Others
Sarjisra’s Message at Jamaat’s Suhrawardy Udyan’s assembly

Sarjisra’s Message at Jamaat’s Suhrawardy Udyan’s assembly

3h | TBS Today
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net