Business leaders have demanded the relaxation of conditions for availing incentive loans and the withdrawal of the requirement to deposit 2% in cash to regularise defaulted loans.

They made the demands at a meeting between representatives of various business organisations and Bangladesh Bank.

The businesses said they were facing delays and various complications in obtaining loans from the central bank’s Tk20,000 crore incentive fund to reopen closed factories. They said delays in holding bank board meetings, demands for additional documents and slow decision-making on loan applications were hindering the disbursement process.

They therefore demanded that banks process applications quickly and disburse the loans without delay.

The meeting was held on Tuesday between Bangladesh Bank and representatives of various business organisations.

Representatives of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Bangladesh Textile Mills Association (BTMA), Bangladesh Chamber of Associations (BCA), Bangladesh Employers’ Federation (BEF), Bangladesh Jute Association (BJA) and Metropolitan Chamber of Commerce and Industry (MCCI) attended the meeting.

Deputy Governors Md Kabir Ahmed and Md Sarwar Hossain, along with officials concerned, represented Bangladesh Bank.

According to meeting sources, the participants discussed the implementation of various incentive programmes introduced by the government and Bangladesh Bank. They also reviewed whether there were any gaps or ambiguities in the policies issued by the central bank for implementing the programmes.

The meeting also stressed identifying genuinely affected businesses and providing them with the necessary support.

Business representatives said delays in holding bank board meetings were slowing the processing of loan and assistance applications. In many cases, it takes up to a month to hold a board meeting, they said.

They therefore demanded that banks hold weekly or special board meetings when necessary to dispose of the applications.

They also called for reducing demands for additional documents and delays in decision-making during the loan application process.

Bangladesh Bank officials said successful implementation of the incentive programmes was a joint responsibility of all stakeholders. They said all concerned parties must work in coordination to ensure that genuinely affected businesses receive assistance quickly.

The central bank also stressed ensuring proper use of funds under the incentive package. Business organisations were also urged to properly scrutinise applications before issuing no-objection certificates (NOCs).

BKMEA President Mohammad Hatem told reporters that although businesses were interested in taking advantage of the Tk20,000 crore incentive package, many were unable to apply because of a lack of cooperation from banks.

“Many banks are unwilling to accept applications. Some are also discouraging entrepreneurs on various pretexts,” he said.

Hatem said there were some complexities in Bangladesh Bank’s circular and called for resolving them quickly and processing the applications already submitted.

He said Bangladesh Bank had also assured them that the issues would be resolved soon.

In May, Bangladesh Bank announced a Tk62,000 crore fund to revive closed factories and boost the economy. Loans from the fund will be provided to entrepreneurs in various sectors at interest rates of up to 7%.

The central bank said the initiative would create employment for 2.5 million people. However, the economy has yet to see any significant benefit from the initiative even after four months.

According to Bangladesh Bank sources, only Tk50 crore has been disbursed from the Tk20,000 crore fund. Loan disbursement under other components has also made little progress.