RMG hopes for major share of stimulus

Star Business Report

RMG leaders expect a major chunk of Tk 5,000 crore-stimulus package declared in the proposed budget for 2009-10 will go to the garment sector.
They expressed optimism yesterday after Finance Minister AMA Muhith held separate meetings with delegates of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).
The meetings were held at the residence of the finance minister in Dhaka.
The leaders referred to an assurance from the minister that the government would provide support for the two major export-earning sectors.
"In the meeting, the minister has assured that the government would allocate more money, if necessary, to continue the smooth running of the sector," BKMEA President Fazlul Hoque told The Daily Star.
The government is expected to instruct the central bank so that exporters can receive export incentives in the shortest possible time.
In the present system, it takes around 1.5 years to get the incentives because of red tape.
The minister also hinted at giving subsidy on bank interest and extending loan rescheduling, the leaders said.
On the outcome of the meeting, BGMEA President Abdus Salam Murshedy said: "We are very happy over the meeting with the minister as he was specific on the RMG sector."
"At the meeting, the minister assured us of providing policy and financial support," said Murshedy without elaborating. .