Garment exporters on Tuesday sought an immediate solution to the liquidity crisis in five commercial banks so that they can pay workers' salaries on time and open letters of credit (LCs) to continue normal business activities.
They expressed concern that labour unrest may increase in garment factories if the banks fail to disburse salaries on time due to the ongoing cash crunch.
Exporters linked with these troubled banks are also struggling to open LCs for importing raw materials, said Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Mahmud Hasan Khan in a statement following a meeting with Bangladesh Bank (BB) Governor Ahsan H Mansur at the central bank office.
The liquidity-hit banks are even unable to release export proceeds to apparel exporters on time, the statement added.
As a result, affected factories are facing disruptions in both export and import operations, tarnishing the image of the sector and the country among international communities.
The governor assured business leaders that initiatives would be taken as soon as possible to resolve the problem so that exporters can meet their financial needs, according to the statement.
