Businesses seek faster loans from Tk20,000cr factory revival fund
Business representatives said delays in bank board meetings were slowing down the processing of loan and support applications.
Business leaders have urged the Bangladesh Bank to expedite the disposal of loan applications submitted under its Tk20,000 crore incentive fund aimed at reviving the closed factories.
The demand was made at a meeting between Bangladesh Bank officials and representatives of various business organisations yesterday (6 October).
According to meeting sources, discussions focused on various incentive funds introduced by the government and Bangladesh Bank. The central bank has issued several policy guidelines to implement these programmes.
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Business leaders were invited to review whether there were any gaps or ambiguities in the guidelines. The meeting also stressed the need to properly identify genuinely affected businesses and provide them with the necessary support.
Business representatives said delays in bank board meetings were slowing down the processing of loan and support applications. In many cases, it takes up to a month for a board meeting to be held.
They called for banks to hold separate board meetings every week or as needed to expedite the disposal of applications. They also urged banks to reduce requests for excessive documentation and delays in decision-making during the banking process.
Bangladesh Bank officials said successful implementation of the programme was a joint responsibility of all stakeholders.
They stressed the need for coordinated efforts to ensure that genuinely affected businesses receive the necessary support quickly and benefit from the programme. They also called for proper utilisation of the fund and thorough verification before business organisations issue no-objection certificates.
Speaking to The Business Standard, BKMEA President Mohammad Hatem said businesses are interested in availing themselves of the Tk20,000 crore incentive package, but many are unable to apply due to a lack of cooperation from banks.
"Many banks are reluctant to accept applications, while some are discouraging entrepreneurs on various pretexts. There are also some complexities in Bangladesh Bank's circular," he said.
"We have urged the authorities to remove these complexities quickly and dispose of the applications that have already been submitted without delay," he added.
Hatem said Bangladesh Bank was very sincere about implementing the package and wanted to ensure its successful implementation.
"Bangladesh Bank has also assured us that the issues will be resolved quickly," he said.
According to Bangladesh Bank sources, 25 customers have so far applied for loans totalling Tk750 crore from the fund. Of them, only Tk50 crore has been disbursed to three customers.
Representatives of the Bangladesh Garment Manufacturers and Exporters Association, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Bangladesh Textile Mills Association, Bangladesh Chamber of Associations, Bangladesh Employers' Federation, Bangladesh Jute Association and Metropolitan Chamber of Commerce and Industry attended the meeting. Deputy Governors Md Kabir Ahmed and Md Sarwar Hossain, along with officials from relevant departments of Bangladesh Bank, were also present.
