In an effort to tide over the existing crisis facing the Bangladesh readymade garment industry, the garment manufacturers have demanded that the Government implement single-digit lending rate soon.
The demand was made following the implementation of the much-talked-about single-digit lending rate which was on Monday deferred by another 3 months following a request from the bank owners.
“Different media outlets reported that the Government has decided to implement the 9 per cent interest rate from 1 April 2020. Country’s textile and apparel companies are now passing through a tough time due to an increase in their operating costs. Under the circumstance, 9 per cent lending rate should be implemented from 1 January 2020 to help the sector make a turnaround,” underlined a letter written by the President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Dr. Rubana Huq to finance minister AHM Mustafa Kamal.
Dr. Rubana Huq further added “For the sake of increasing investment, reducing business operating cost and increasing export growth, we request you to implement 9 per cent interest rate from 1 January 2020 and to give necessary directives to the commercial banks in this regard.”
The BGMEA President further maintained that Bangladesh’s business organisations including BGMEA, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Bangladesh Textile Mills Association (BTMA) had been demanding reducing the bank loan interest rate to single digit for long.