Banking issues force 400 RMG factories to halt production: BGMEA
The trade body calls for policy support to reopen these factories
Around 400 ready-made garment (RMG) factories in Bangladesh have been forced to halt production due to banking sector-related problems, according to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
With the right policy support, these factories could reopen, potentially creating employment for an additional 100,000 workers, the trade body opined.
The statement came during a BGMEA meeting today (7 September) chaired by President Mahmud Hasan Khan at the BGMEA Complex in Uttara, attended by 70 members.
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BGMEA Vice President Md Shehab Udduza Chowdhury, Director Faisal Samad, and BGMEA Standing Committee on Exit Policy Chairman Asif Ibrahim and Standing Committee on One Stop Sale Chairman Mozammel Haque Bhuiyan were also present.
At the meeting, members proposed extending the term for default loans from three to 10 years, citing the current economic challenges that make short-term repayment difficult.
They also discussed a more tolerant exit policy to allow affected entrepreneurs to leave the business with dignity.
BGMEA members also said the policy support provided by Bangladesh Bank should not be limited to large exporters; it should also include small and medium-sized factories.
