BB boss backs BKMEA's demand for rate subsidy

The central bank governor yesterday backed readymade garment exporters' demand for subsidy on bank interest rates in the upcoming national budget to combat the global recession fallout.
The demand came as the leaders of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) met Bangladesh Bank Governor Dr Atiur Rahman at his office in Dhaka.
BKMEA President Fazlul Hoque discussed with the governor the latest situation of the knitwear sector and demanded different banking facilities for the sector.
Hoque said the knitwear exporters demanded 5 percent subsidy on bank interest, as the existing rate is too high for them to be competitive in times of recession.
At the meeting, Hoque also proposed the BB extend the loan repayment facility for the RMG sector without down-payment up to June 2010 from September 2009.
The central bank through a recent circular offered the loan repayment facility without downpayment until September 2009.
Hoque said the knitwear exporters also pushed for reducing the banks' service charges for smooth running of the sector.
BB Executive Director Khandakar Muzharul Haque said the central bank has also advised the garment exporters to seek subsidy on bank interest so the private commercial banks do not feel pressure.
"We are also considering whether any environmental fund can be created for giving loan to the manufacturers for setting up effluent treatment plants to protect any environmental hazard," Haque said.