The garment manufacturers in the country raised concerns on Tuesday over severe disruptions to their financial operations caused by several troubled banks, according to a press release.
A delegation from the Bangladesh Garment Manufacturers and Exporters Association, led by its president, Mahmud Hasan Khan, raised concerns during their meeting with Bangladesh Bank governor Ahsan H Mansur at the central bank›s headquarters.
During the meeting, the BGMEA president explained the difficulties exporters were facing due to liquidity shortages in five struggling banks, the press release added.
Despite the inflow of export proceeds, these banks have allegedly failed to release payments to exporters on time and are unable to open new letters of credit, he added.
‘This crisis has left many garment factories in serious financial distress, disrupting regular operations and exports. Most worryingly, factories are struggling to pay workers’ wages and allowances on time, fueling labour unrest that could escalate into a law-and-order issue,’ he added.
He warned that the situation is tarnishing Bangladesh’s international image and eroding buyers’ confidence.
‘This is extremely damaging for the industry at a time when stability is critical,’ he added.
BGMEA leaders expressed deep concern that, without immediate intervention, many companies could soon become sick industries, leading to mass layoffs and increasing the country’s largest export sector›s vulnerability.
They urged the central bank to take swift and effective measures to resolve the crisis.
Governor Mansur assured the delegation that their concerns would be addressed promptly.
The central bank would make temporary arrangements to ensure the timely disbursement of exporters’ dues, thereby meeting their immediate financial needs, he added, stating that longer-term measures would follow to resolve the problem permanently.
BGMEA vice-president Md Shehab Uddoza Chowdhury, directors Mohammad Abdur Rahim, Fahima Akter, and ABM Shamsuddin, along with other industry leaders were also present in the meeting.
