IMF team inquires about gap between exports and repatriation proceeds
Regarding the LC opening complication, the BGMEA president said he told the IMF mission that the Bangladesh Bank always gives priority to the apparel industry so that the apparel exporters can open LC smoothly
The IMF has inquired about the disparity between apparel export value and their repatriation proceeds in Bangladesh.
The visiting IMF delegation during a meeting with Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan today also asked about whether apparel exporters were facing any complications in opening letters of credit (LCs) amid the ongoing dollar crisis.
Talking with The Business Standard Faruque Hassan said he informed the IMF mission that the differences between export value and repatriation proceeds is not too much and the repatriation is not fully under the control of the exporters. In some cases, buyers pay at discounted prices after shipment, he said.
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"Besides, some buyers delay or partially pay, with adjustments made later. We've clarified that exporters aren't intentionally delaying repatriation. Delays can be due to brands deferring payments or going bankrupt.
"We also informed them (IMF delegation) when any of international suppliers ask our central bank about their outstanding payments through the diplomatic channel, the Bangladesh Bank takes initiative to pay them."
Regarding the LC opening complication, the BGMEA president said he told the IMF mission that the Bangladesh Bank always gives priority to the apparel industry so that the apparel exporters can open LC smoothly.
He said, "There are no problems in back-to-back LC opening, if some things happen that might be an individual case".
