Business leaders urge faster disbursement from Tk20,000cr fund for closed factories

Business leaders have urged Bangladesh Bank to expedite the processing of loan applications under the Tk20,000 crore incentive package created to help revive closed factories.

They made the demand at a meeting with Bangladesh Bank on Tuesday, attended by representatives of major business organisations, including the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Bangladesh Textile Mills Association (BTMA), Bangladesh Chamber of Associations (BCA), Bangladesh Employers’ Federation, Bangladesh Jute Association and Metropolitan Chamber of Commerce and Industry (MCCI).

Deputy Governor Dr Md Kabir Ahmed and Md Sarwar Hossain, along with officials from relevant departments, represented Bangladesh Bank at the meeting.

According to meeting sources, the participants discussed various incentive funds introduced by the government and the central bank, as well as the policies issued for implementing the support programmes.

Business leaders were invited to review whether there were any gaps or ambiguities in the policies and to discuss ways to ensure that genuinely affected businesses are properly identified and receive the necessary support.

The business leaders said that delays in bank board meetings were slowing down the approval of loan and assistance applications. In many cases, it takes up to a month for a bank board meeting to be held, they said.

They called for banks to hold weekly or special board meetings, when necessary, to expedite the disposal of applications. They also urged banks to reduce excessive documentation requirements and delays in decision-making.

Bangladesh Bank officials said that successful implementation of the programmes was a joint responsibility of all stakeholders.

They stressed the need for coordinated efforts to ensure that genuinely affected businesses receive assistance quickly and benefit from the package. They also called for proper utilisation of the fund and thorough verification before business associations issue no-objection certificates (NOCs).

BKMEA President Mohammad Hatem told the journalists that although businesses are interested in accessing the Tk20,000 crore package, many entrepreneurs are unable to apply because of a lack of cooperation from banks.

“Many banks are reluctant to accept applications, while some are discouraging entrepreneurs on various pretexts. There are also some complexities in the Bangladesh Bank circular,” he said.

“We have demanded that these complications be resolved quickly and that the applications already submitted be disposed of without delay,” Hatem said.

He added that Bangladesh Bank was very sincere about implementing the package and wanted it to succeed. The central bank, he said, had assured the business leaders that the issues would be resolved quickly.

According to Bangladesh Bank data, 25 customers have so far applied for loans totalling Tk750 crore from the fund. However, only Tk50 crore has been disbursed to three customers.