Bangladesh Bank has relaxed its loan rescheduling policy for raw jute exporters for the next two years, according to a circular issued on Sunday.
Under the new guidelines, exporters can reschedule their loans by making a down payment of 2 percent of their outstanding balance, with the outstanding amount calculated as of 31 March 2024.
This move is expected to facilitate easier access to loans from scheduled banks, as the revised moratorium will be accepted by these financial institutions.
Despite Bangladesh’s status as the world’s leading raw jute exporter, traders have encountered significant challenges in recent years. Rising production costs coupled with stagnant export prices in the global market have put pressure on the industry.
Additionally, industry stakeholders have raised concerns over outdated technology, obsolete machinery, and ineffective management practices, which have all contributed to operational losses.
“Outdated technology and old machinery have decreased the productive efficiency of the industry. Inefficient management and corruption have led to operational losses,” said Abu Sufiya, a raw jute exporter. He further noted that the lack of investment in modernization and innovation has rendered the sector less competitive internationally.
