Bangladesh trade chamber hails LC margin withdrawal by central bank

The central bank's initiative to form a Revolving Refinancing Fund for small ventures would make funding access easier for such entrepreneurs, the chamber noted.

Importers now can bring in all types of capital equipment, consumer goods and capital raw materials without any margin based on a bank-customer relationship.

"If imports increase, new investment, re-investment, availability of capital equipment and overall industrial production will subsequently increase that would bring a positive result in export growth," domestic media outlets quoted DCCI president Ashraf Ahmed as saying.

Besides, an increased supply of raw materials would result in factories being able to ensure production at their maximum capacity, it noted.

The supply of products will accordingly rise, lowering the overall domestic inflation situation, the chamber believes.

Under the Revolving Refinancing Fund, the interest rate will never exceed 8 per cent and no supervision charge or even early settlement fee can be imposed, which would be a relief for cottage, micro, small and medium enterprises, it added.

Fibre2Fashion News Desk (DS)