The ongoing downtrend in readymade garments export will probably continue till April this year, according to Bangladesh Garment Manufacturers and Exporters Association president.
STIMULUS PACKAGES
Exporters seek extension of loan moratorium, repayment periods
Star/file
The garment sector has been going through tough times for the pandemic’s second wave, a BGMEA leader said.
Exporters are seeking extensions on both moratorium and repayment period for loans accrued from a government sponsored stimulus package aimed at helping them cope with the pandemic s fallouts.
So far, the government has provided Tk 10,500 crore through banking channels to the export-oriented sectors at only 2 per cent service charge for the payment of workers wages between April and August last year.
While disbursing the fund, Bangladesh Bank incorporated a moratorium of six months, meaning repayments need not start for the first half year s period. The government said the loans needed to be repaid in 18 monthly instalments.
Disrupted Global Supply Chain Amid Corona
Woven exports fall, knitwear sector rebounds
8th January, 2021 09:40:26
The woven sector, which makes up more than 50 per cent of RMG exports, has continued to remain in the negative trajectory due to a fall in export orders from major markets like US and EU amid the corona pandemic.
Though the knitwear sector has been maintaining its strength in the first half of the current fiscal, the woven sector continues to stay weak.
The RMG sector, which contributes around 86 per cent to the country’s total exports income, is comprised of two sectors including ‘knitwear’ and ‘woven’ sector.
Current downtrend in export likely to continue till April: BGMEA President
UNB
7th January, 2021 07:13:55
President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Dr Rubana Huq has said the current downtrend in RMG export will probably continue till April of this year. I seek all your help to look at the industry perspective and help us frame our narrative for policy makers to pay heed to the real situation and not the perceived one, she said in an open plea on Thursday.
She said the uncertainties and stresses caused by the second wave of Covid-19 still persists, coupled with the unavailability of vaccine, and highlighted the impact on the global economy it would leave.
Staff Correspondent,
bdnews24.com File photo
BGMEA President Rubana Huq has written an open letter seeking extension of the tenure of loans from the coronavirus stimulus package and ease of other rules. );
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The government had announced the nearly Tk 100 billion incentive for the readymade garment industry to pay the workers from April to September in 2020 amid the coronavirus crisis.
The repayment in 24 monthly instalments was scheduled to start in January and the Bangladesh Bank has recently set the third week of the month to begin the repayment.
But the president of the Bangladesh Garment Manufacturers and Exporters Association said they need one more year to repay the loans.