In what is seen as a significant move that would give some relief to the garment makers of Bangladesh who have been calling for extension of the loan repayment period, the country’s central bank, Bangladesh Bank (BB), has started working to extend tenures of repayment of various stimulus or incentive packages, announced by the Government to help overcome the fallouts of the coronavirus pandemic. Media reports maintained this citing concerned official of the central bank. Speaking to the media, chief spokesperson of Bangladesh Bank, Sirajul Islam, reportedly, stated that the central bank has started working on the issue while adding that the concerned departments have prepared a draft report on extending the tenures of the incentive packages in line with instruction of the Government. As per reports, Bangladesh has so far announced 31 incentive packages to provide financial and policy support to revive the coronavirus-hit country’s economy, of which 10 are low-interest loan-based incentives and 21 policy support-based ones, including the first incentive package of Taka 5,000 crore for the payment of salary and allowances of workers and employees of export-oriented industries, the size of which was increased by another Taka 3,000 crore subsequently. Service charge at the rate of 2 per cent had to be paid against the loan, which was to be repaid through a total of 18 equal instalments, including a grace period of 6 months, in the first 2 years and, as per rules, the instalment payments in this regard are expected to be started from the current month. However, the apex garment makers’ body of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) demanded the loan repayment period be extended from the current 2 years to 5 years considering the apparel sector has not yet been able to completely cope with fallouts of the pandemic even as the export activities are being hampered again on account of the second wave of the pandemic
