Business Today

LC situation will be normal in two-months: Governor

Bangladesh Bank Governor Abdur Rauf Talukder has said that the current situation regarding the opening of Letters of Credit (LC) may become normal within the next two months. He said this during a meeting with the newly elected board of directors of Dhaka Chamber of Commerce and Industry (DCCI) at the Bangladesh Bank office on Monday.

DCCI President Md. During the meeting led by Samir Sattar, senior vice president of the organization SM Golam Farooq Alamgir, vice president Md. Junayd Ibn Ali and other members of the council.

Bangladesh Bank Governor Abdur Rauf Talukder mentioned that the economy is now facing three major challenges. Bangladesh has to face these three challenges: Russia-Ukraine war, US Federal Reserve’s interest rate hike and China’s current corona situation. However, despite these challenges, the governor believes that our economy is quite stable. He gave a glimpse that the loan situation may be normalized in the next two to one months.

DCCI President Md. wants the help of Bangladesh Bank to keep the supply of daily necessities uninterrupted during the coming holy month of Ramadan. Sameer Sattar. He said that Bangladesh Bank can help the commercial banks in providing sufficient foreign currency to settle the loans.

Abdur Rauf Talukder said that Bangladesh Bank is working to ensure uninterrupted supply of daily necessities during Ramadan. He said that several policy measures including minimizing the LC margin on the import of daily necessities for Ramadan are underway.

Apart from this, Abdur Rauf Talukder told the DCCI leaders that Bangladesh Bank has recently brought some policy changes to increase the flow of expatriate income (remittance). The Governor said, relaxation of documents required for remittance of expatriate income, fee waiver by local banks and involvement of Mobile Financial Service (MFS) in remittance collection. As a result, he expressed hope that the flow of expatriate income will increase in the future.

DCCI President Md. Sameer Sattar said that public-private partnership is very important to tackle economic challenges. Considering the current global economic situation, it is necessary to increase credit flow to the private sector to revive the economy. Besides, Samir Sattar advised to ensure good governance in controlling defaulted loans and take strict measures to quickly recover loans from habitual defaulters. For that he also suggested to bring necessary reforms in banking law.

President of Dhaka Chamber thanked Bangladesh Bank for announcing timely monetary policy in the meeting. Sameer Sattar. He said that the supportive policies and guidelines mentioned in this year’s monetary policy will help the country’s private sector as well as the financial sector to turn around.

Md. Sameer Sattar also said that in the interest of the CMSME sector of the country, it is necessary to simplify the process of providing necessary documents in the case of loan assistance and credit guarantee scheme. Apart from this, he called for simplifying the documentation process to make it easier for young and innovative startups to get loans.