The impact of COVID-19 (corona) on the economy of Bangladesh and way forward to deal with it.

Almost 25 million jobs could be lost worldwide as a result of COVID-19, says ILO.

In Bangladesh, Orders for nearly 650 million garments, worth a total of US$2.04 billion have been cancelled, impacting on 738 factories and about 1.42 million workers, according to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Apprehending the chain and deep consequences in Bangladesh, Honorable PM, Ms.Sheikh Hasina (The Mother of Humanity), has announced a US$0.60 billion (Tk5,000 crore) incentive for export-oriented industries that would be spent explicitly to pay wages to workers.

Bangladesh Bank has promulgated a circular stating not to classify any loan/lease for default in repayment or maintain the status quo upto 30 June 2020.

Prominently other interim arrangement has been taken by Bangladesh Bank as mentioned below which are effective upto 30 September 2020:
1. Extension of export proceed realization timeline upto 6 months from the existing 4 months.
2. Extension of timeline for the submission of Bill of Entry to Bangladesh Bank from 4 months to 6 months.
3. Usance (Deferred) period of back to back LC can be extended upto 360 days from the existing 180 days.
4. Credit period of export development fund (EDF) of Bangladesh Bank can be extended upto 180 days from the existing 90 days.
5. Allowing the discount upto 10% of FOB at the time of Repatriation of export bills which was previously 5% of FOB.

It may be slow, but that's for sure Bangladesh will turnaround to stand and claim back its crown as the top rank of RMG exporter.

Please, be with us.

#A_friend_in_need_is_a_friend_indeed.