Businesses press Bangladesh Bank to ease stimulus loan conditions

Business leaders have urged Bangladesh Bank to relax the terms of its stimulus package, saying tough conditions are keeping commercial banks from lending and leaving many entrepreneurs unable to access cheap credit.

They made the call at a meeting with central bank officials today at its headquarters in Dhaka. The meeting was presided over by Md Kabir Ahmed, deputy governor, while Md Sarwar Hossain, another deputy governor, was also present.

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Representatives of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) joined the meeting.

The business leaders pointed out how political uncertainty, energy shortages, higher fuel prices and high interest rates have pushed up the cost of doing business.

During the meeting, banks also found it hard to disburse loans while complying with the conditions that come with the loan packages announced by the banking watchdog, they said.

A senior Bangladesh Bank official involved in the meeting confirmed that the businesses had demanded simpler terms and said the central bank would review the matter seriously.

Bangladesh Bank announced the Tk 60,000 crore "Stimulus Package" on May 23 to revive the economy. It is meant to support the revival of closed and ailing industries, agriculture and the rural economy, small and medium enterprises, and export diversification.