The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) will seek permission from the Government for opening a separate bank for the convenience of garment manufacturers.
The initiative is being taken by the BGMEA to make sure that liquidity crunch does not affect the garment sector which contributes to around 80 percent of the country's total income.
Mr. Shafiul Islam (Mohiuddin), President of the BGMEA, stressed on the need for a separate bank for the garments industry and added that the industry deserves special attention from the Government, if it is to expand further.
Mr. Mohiuddin said: "We will call on the Finance Minister to seek his support for obtaining a bank license." During the meeting with the Minister, the representatives of the ready-made garment sector are also expected to place some demands relating to their sector.
"The setting up of a specialised bank will facilitate more investment in the RMG sector and will also enable disbursal of cheaper loans to small and new entrepreneurs," the BGMEA President said.
Every year, garment manufacturers transact billions of dollars through commercial banks, but they get no additional support from them, he said.
Expressing the readiness of the BGMEA to raise the necessary capital for the specialized bank, the BGMEA President said, “the bank will lend out to garment manufacturers at a single-digit rate."
"The specialized bank will also save time while opening L/C or getting loan sanctioned, thus accelerating the supply to the buyers”, the BGMEA chief said.
The garment export industry in Bangladesh has recorded an extraordinary 42 percent growth during the first ten months of 2010-11 amounting to US$ 14.17 billion.
Fibre2fashion News Desk - India
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