COVID-19 FightBack: HSBC supports Bangla garment sector

27 Mar '20

2 min read

Pic: Shutterstock

HSBC Bangladesh recently announced measures to help textile and garments clients tide over the fallout of the COVID-19 pandemic. It will offer special short-term loans of up to one year with principal moratorium for four months, which can be used for supporting payroll bill and utility payment. It will also allow a three-month moratorium on existing term loans.

Although the Bangladesh Bank had some time back asked banks to extend similar support to businesses hit by the pandemic, the British bank is the first to formally announce the measures.

HSBC will provide up to 90-day extension of import liability maturing in next three months where export shipments are delayed, Bangla media reported citing a press release by the bank.

It will work to ease cash flow pressures faced by businesses and help customers tackle market uncertainties, including disruptions to their supply chains.

To ease the pressure on Bangladeshi economy, clients will be allowed to enjoy trade relief in the form of waiver of letters-of-credit (LCs) commission and margin requirements for the import of medicine, medical equipment and accessories used to treat COVID-19.

Customers facing delivery disruptions owing to late shipment and presentation of documents will have amendment fees on LCs waived, said HSBC.

The bank will provide support to customers to onboard onto HSBC's digital platforms to enable the flow of trade to continue.

Along with the textile and garments sector, the lender will actively evaluate and try to introduce specific initiatives to support its customers in other sectors as required.

Fibre2Fashion News Desk (DS)

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