Extending loan repayment deadline to save over 500 factories: BGMEA chief

Staff Reporter:

Extending the loan repayment period from three to six months could prevent 500 to 600 readymade garment (RMG) factories from being classified as loan defaulters, said BGMEA President Mahmud Hasan Khan during a meeting with Special Assistant to the Chief Adviser, Anisuzzaman Chowdhury, held at the Planning Ministry on Thursday.

The BGMEA Chief urged the interim government to reconsider Bangladesh Bank’s current loan classification policy, stating that it imposes excessive pressure on entrepreneurs.

A press release issued by the association quoted him as saying, “The repayment period has been slashed from nine months to just three months. Due to financial limitations, many factory owners find it difficult to comply with this timeline.”

The BGMEA delegation – which also included Vice Presidents Md Mizanur Rahman and Md Shehab Udduza Chowdhury – highlighted several pressing challenges facing the industry. These included reductions in cash incentives, persistent gas shortages, inefficiencies in customs processes, and complications in renewing trade licenses and import-export codes.