Dhaka, Bangladesh (BBN)- Bangladesh Bank (BB) Governor Atiur Rahman Sunday advised the apparel exporters to seek subsidy on loans interest in the upcoming budget for fiscal 2009-2010 to offset the impact of ongoing global meltdown on the economy.

The advice was made at a meeting with the leaders of Bangladesh Knitwear Manufactures and Exporters Association (BKMEA) held in the central bank on Sunday, the exporters said.  

“The central bank governor is very much positive about formation a fund to subsidies interest rate on loans for exporters for fiscal 2009-2010,” BKMEA President Fazlul Hoque told BBN in Dhaka after the meeting.

He also said the BB governor has also assured them to provide support for formation such fund in the next budget.

“We’ve already submitted a proposal to the finance ministry on formation such fund,” the BKMEA chief said, adding that the exporters will be benefited, if the government will provide such financial support to over come the global economic recession.

He also urged the government to allow the five per cent interest rate subsidy that would help to bring down the interest rates on lending for exporters at single digit from the existing 14 per cent.

Senior Executive Director of the BB Khandakar Muzharul Haque said the exporters should demand subsidy on interest rate that would also help the banks particularly the private commercial banks to minimize their cost of fund.

BBN/SS/SI/AD-24May09-7:15 pm (BST)