BB allows special loans to help exporters pay February wages

The Bangladesh Bank (BB) has allowed banks to provide special term loans to export-oriented industries to help them pay workers’ February wages, aiming to maintain uninterrupted production and sustain export capacity amid mounting economic pressure.

In a circular issued on Tuesday under Section 45 of the Bank Company Act, 1991, the central bank said global and domestic economic headwinds, declining exports, delays in opening letters of credit (LCs), and liquidity stress have disrupted operations in many export-oriented factories. As a result, some firms are struggling to pay salaries and allowances on time.

Banks have been instructed to extend term loans, outside existing working capital limits, to solvent export-oriented units solely for disbursing February wages. The loan amount cannot exceed the average wage and allowance payments of the previous three months of the respective firm.

Under the directive, only industries that export at least 80% of their total production will qualify. Eligible firms must also have paid workers’ wages from November 2025 to January 2026.

The status of being “export-oriented” and “operational” must be certified by relevant trade bodies, including the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association.

Banks will directly disburse loan funds into workers’ bank accounts, including through mobile financial services (MFS). The facility will carry market-based interest rates and must be repaid within one year, including a three-month grace period. Repayment may be made in monthly or quarterly instalments.

The central bank has barred banks from charging any additional fees, commissions or penalties beyond the regular interest.

Tk2,500 crore cash support welcomed

Meanwhile, the BGMEA has welcomed the government’s decision to allocate Tk2,500 crore in outstanding cash assistance to the export-oriented ready-made garment (RMG) sector and related industries.

According to a notification from the Ministry of Finance, Tk1,500 crore has been allocated in the first phase of the third instalment for fiscal year 2025-26, while Tk1,000 crore has been earmarked for the second phase.

BGMEA President Mahmud Hasan Khan thanked the finance minister, commerce minister and the BB governor, describing the move as a timely intervention during a critical period for the garment sector.
He said the funds would provide much-needed relief to factory owners facing pressure to pay salaries, allowances, bonuses and utility bills ahead of Eid-ul-Fitr.

The BGMEA recently held discussions with the Ministry of Finance and the central bank to expedite the release of pending cash assistance, after which the allocation was approved.

The association has urged its member factories to contact their respective lien banks to complete the necessary formalities and access the facility.