The Bangladesh Garment Manufacturers and Exporters Association on Sunday demanded exemption from repayment of at least Tk 649 crore in principal amount of loans and interests for 133 ‘sick’ readymade garment factories. BGMEA president Rubana Huq at a meeting with finance minister AHM Mustafa Kamal at his office in Bangladesh secretariat in Dhaka also demanded payout of 1 per cent special cash incentive without imposing any condition. In the budget for the this financial year 2019-20, the government announced 1 per cent cash incentive for RMG exporters but the Bangladesh Bank imposed some conditions to avail the benefit. Earlier, the BGMEA president placed before the finance minister a charter of demand that included waiver from repayment of loans for ‘sick’ industries and rescheduling facility for small and medium factories. According to BGMEA sources, the total amount of loans was Tk 238.49 crore. Rubana in written proposals requested the finance minister to allow facility to the factories to cancel or renew their licences with the waiver of all outstanding taxes. Citing a previous gazette notification issued by the government recognising 179 RMG factories as ‘sick’ industry, the BGMEA president in her proposals urged the finance minister to take initiative in waiving repayment of loans including principle amount, interests and other charges for 133 RMG factories. Sources said that the meeting had decided to submit the proposal of loan decomposition to the prime minister soon. At the meeting, Rubana also demanded compensation for the sector through additional provision of Tk 2-5 against each dollar on the value they retained and retrospective effect of 0.25 per cent source tax from July. She urged the minister to set the maximum interest rate for packing credit and to allow higher advance payment for defined category. The BGMEA also demanded special fund for innovation to ensure product diversification to remain competitive in the world market.
