BGMEA seeks more time to repay salary stimulus loans

The Bangladesh Garment Manufacturers and Exporters Association in a letter to the Bangladesh Bank on Tuesday again requested the government to extend the repayment tenure of salary stimulus loans to 36 months from the existing 18 months. 

The BGMEA also demanded the re-scheduling of all term loans till December if anyone fails to repay on time. 

The repayment time of such loans is scheduled to start in September this year after the end of the 1.5-year moratorium facility. 

In another letter, BGMEA President Faruque Hassan also urged the central bank not to classify their bank loans till December if they fail to pay the installments.     

The same letters were also sent to the senior secretary of the finance ministry. 

Following the pandemic outbreak in Bangladesh, the government in 2020 extended the loan moratorium for apparel makers until September this year. The repayment deadline later extended three times to 30 September 2021.

Talking to The Business Standard, BGMEA President Faruque Hassan said, "For the last 1.5 years amid the pandemic, RMG factory owners have been running their units despite a huge loss, considering workers' livelihood and future business opportunities."

"Apparel factories have now secured a good number of work orders. If the government allows more repayment time, it will help us turn around. Otherwise, entrepreneurs will be under a lot of pressure," he added.     

When contacted, BKMEA Vice-President Mohammad Hatem told TBS, "We need the facility from the government just to survive."

"We are now not in a position to repay our loans," he said, adding that apparel exporters will be able to pay back 4-5 months later.