The Bangladesh Bank has instructed the country鈥檚 commercial banks to extend loan facilities to export-oriented industries for the payment of salaries and allowances for August, saying that the recent disruptions from political instability and global economic conditions affected timely export value repatriation.
In a circular issued on Sunday, the central bank stated that loans should be provided based on the banker-customer relationship and an assessment of the customer鈥檚 financial capability, even if this requires exceeding the current capital loan limit.
The circular specified that the prevailing market interest rate should apply to the loans, and the loan amount must not exceed the average salary and allowance payments made by the borrower over the past three months.
The Bangladesh Bank instructed that scheduled banks should directly disburse salaries and allowances for August to employees鈥� accounts, including mobile financial system accounts, while ensuring the total debts, including negotiable debts, remained within the single borrower exposure limit.
According to the circular, the loan amount might be repaid in instalments over a maximum period of one year, with a grace period of three months, in the form of a term loan.
No additional interest, profit, fee, or charge under any name other than the regular interest will be applied to such loans, it said.
The central bank also specified that to qualify as an active export-oriented industry, an establishment must export at least 80 per cent of its total production and have paid workers鈥� salaries from May 2024 through July 2024.
Certification of operational and export-oriented status must be obtained from the relevant trade organisation, such as the Bangladesh Garment Manufacturers and Exporters Association or the Bangladesh Knitwear Manufacturers and Exporters Association, the circular said.
The BB said that recent disruptions from political instability and global economic conditions were hindering export-oriented industries鈥� production and timely export repatriation, making it difficult to pay employees.
To maintain export trends and preserve production capacity, providing financial assistance to these industries is essential, it said.
