Dhaka, Bangladesh (BBN)- The central bank of Bangladesh has asked all commercial banks to facilitate foreign trade through purchasing inland bills without delay, officials said.
The instruction came at a meeting of the stakeholders of the apparel sector, senior private bankers and top officials of the central bank on Monday with Deputy Governor of the Bangladesh Bank (BB) SK Sur Chowdhury in the chair.
“No panic should be created on any excuse, the inland bills of all the banks should be purchased,” the BB deputy governor told reporters after the meeting, adding that the banks would act as facilitator for international trade through purchasing the bills.
“We’ve already discussed the issue of the accepted bills’ payment with authorities of Sonali Bank Limited,” Mr. Sur said, adding that the Sonali bank would soon make payment of their accepted bills.
The central bank has taken the latest measure against the backdrop of reluctance shown by some commercial banks in purchasing inland bills after the Hall Mark loan scam.
“We’ve been assured by the central bank that no bank could show unwillingness to purchase inland bills,” Shafiul Islam Mohiuddin, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said.
At the meeting, the commercial banks have assured the country’s major export sectors, especially the ready-made garments (RMG) industry, of purchasing the bills in line with BB’ instruction.
“We’ll carry out the BB’s instruction relating to purchasing the inland bills,” Nurul Amin, chairman of the Association of Bankers, Bangladesh (ABB), said, adding that the bankers are also working to settle all overdue accepted bills.
“We’ll keep continuing our support to facilitate the country’s RMG sector,” the ABB chief assured.
The garment industry is considered as the country’s largest foreign currency earner, contributing nearly 80 per cent of all export earnings. Currently, around 4.0 million workers are now employed in this most labour-intensive sector, of which 80 per cent are women.
“The Sonali Bank Limited should clear its accepted overdue bills considering those as liabilities of the country’s largest state-owned commercial bank,” Mr. Amin noted.
Among others, top leaders of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Bangladesh Textile Mills Association (BTMA) and Bangladesh Garment Accessories and Packaging Manufacturing and Exporters Association (BGAPMEA) also attended the meeting.
The Hallmark Group and some other business entities have allegedly swindled minimum BDT 35.47 billion from Sonali Bank. The embezzlement, also involving 57 branches of 26 commercial banks, used the accommodation bill against back-to-back letters of credit (LCs) by ignoring banking rules and regulations, according to the central bankers.
BBN/SSR/AD-16Oct12-10:40 am (BST)
