Amidst a slowdown in business expansion and new investments following warnings of global recession in view of the ongoing Russia-Ukraine war, the opening of opening letter of credit (LC) for importing capital machinery in Bangladesh decreased by 65 per cent in the July-August of the current financial year 2022-23.
This is as per reports which added according to the central bank (Bangladesh Bank) data, from July-August, loans for importing industrial machinery stood at US $ 400 million, compared to what was US $ 1.15 billion during the same period last year even as loan LCs for production purposes decreased by around 65 per cent.
Meanwhile, speaking to the media, the President of the Bangladesh Textile Mill Association (BTMA), Mohammad Ali Khokon reportedly maintained some of the new mills had opened capital equipment import credit before the current crisis and went on to add those who did not open the LCs earlier now folded their hands and due to this, all the new factories will not be able to come into production at the scheduled time.
