The Financial Express

Business leaders demand extension of loan moratorium until June

| Updated: January 23, 2022 09:03:26

Business leaders demand extension of loan moratorium until June

Business leaders have urged the government to extend the moratorium facility on loan instalments at least until June this year.

The businesses made the demand at a meeting of the Council of Chamber Presidents-2022 on Saturday. The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) arranged the meeting in Dhaka, reports UNB.

They said the trade and commerce have yet to come back to normal due to the coronavirus pandemic and detection of its new variant.

FBCCI President Md. Jashim Uddin was present as the chief guest at the meeting. Presidents and vice-presidents of districts, cities and chambers of women entrepreneurs from all over the country joined the meeting.

Expressing solidarity with the demands of the businessmen, FBCCI president said, “At least 50 per cent of the borrowers would become defaulters without extension of the loan classification facility.”

"Bangladesh Bank's policy support is now needed even more overcome the pandemic recession. Otherwise, it will be difficult for business, trade and the economy to recover," Jashim said.

“Though small and medium entrepreneurs have been most affected by the pandemic, they had received a very small amount as incentive so far,” he said.

"Banks are reluctant to provide small loans to small and medium enterprises, as banks think it is not profitable to provide small loans. They think lending to the big business sector reduces the operation cost of the bank. But this idea is wrong. Rather it increases the risk of bad debt,” FBCCI president said.

Jashim called upon the government to keep private sector representatives in the policy-making meeting to create a business-friendly environment in the country.

He said the private sector contributes 82 per cent to the economy, so a representative of the private sector is important for any policy formulation for the sake of business friendly policy.

The meeting was chaired by Mostofa Azad Chowdhury Babu, president of the Council of Chamber Presidents and Senior Vice President of the FBCCI.

He said, “Businessmen are still being harassed in the country for collecting taxes and VAT.”

Presidents and vice-presidents of various chambers from across the country demanded that the FBCCI president should get the rank and status of a state minister.

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