Bangladesh Textile Millers Association (BTMA) has urged the Bangladesh Bank to increase the limit of letters of credit (LCs) due to the local currency’s 40% depreciation against the US Dollar in the last two years. They seek a higher limit for single borrowers and want to pay 20% of their term loans in the current year, deferring the rest for four years. They also demand equal conversion prices for remitters and exporters or a market-based dollar price.
Textile millers are also seeking an extension of the repayment period for the Covid-19 stimulus package. The industry is facing challenges due to global economic pressure, volatile dollar market, and political uncertainty. The minimum wage of workers has risen by 50%, exacerbating the situation. The devaluation of the local currency has reduced firms’ LC opening limits, making it difficult to import enough raw materials and meet financial obligations. BTMA is calling for increased LC limits, extended loan facilities, and an extension of the stimulus package.
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