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Bangladesh BTMA demands loans at lower interest rates to offset losses

02 Aug '24

1 min read

Bangladesh BTMA demands loans at lower interest rates to offset losses

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The Bangladesh Textile Mills Association has called for loans at lower interest rates and a six-month suspension of loan instalments to help recovery from losses due to the recent unrest.
It wants interest-free term loans for six months, and soft loans to cover salaries and pay gas and electricity bills.
Factories are struggling to stay afloat, BTMA noted.

The Bangladesh Textile Mills Association (BTMA) recently requested the government for loans at lower interest rates and suspend loan instalments for six months to help the industry recover from significant losses arising out of the recent unrest.

It also urged the government to make all term loans interest-free for the next six months.

A BTMA letter addressed to finance minister Abul Hassan Mahmood Ali highlighted the severe impact of the unrest on the export sector.

Garment factories faced extensive closures during the two weeks of instability, leading to order cancellation, reduced production, absent workers and raw material shortages, the letter noted.

Factory owners are struggling to stay afloat amid these challenges, the letter said. With the monthly payroll for July due, the situation is dire, it noted.

BTMA proposed a one-year bank loan at a maximum interest rate of 2.0 per cent to cover latest salaries and similar loan terms for paying July’s gas and electricity bills. Without this, there could be disruptions in paying workers’ wages and allowances, it feared.

Fibre2Fashion News Desk (DS)

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