Faced with issues like delays in payments from the buyers, deferred shipments, order declines and overall production disruption, Bangladesh garment makers are seeking flexibility when it comes to clearing raw material import payments from the Bangladesh Bank (Bangladesh’s central bank).
Reports maintained this while adding earlier on 26th October, Bangladesh Bank warned commercial banks that if they fail to pay their import bills in time, their authorised dealer (AD) licences for forex trade will be revoked even if apparel makers’ inability to clear letters of credit (LCs) within deadline is now making things difficult for the AD banks.
Reports further added, given the existing situation, a number of commercial banks were pressurising exporters to clear their LCs as soon as possible, otherwise they will have to deal with forced loans, reportedly underlined industry insiders.
