Bangladesh cement producers seek extension to loan moratorium

Cement makers in Bangladesh have pleaded for a loan moratorium until the end of June 2021. If extended, the industry, as well as the economy, could strongly recover from the pandemic's fallout, said the letter dated December 22 from the Bangladesh Cement Manufacturers Association (BCMA) to the Bangladesh Bank (BB).

The request to extend the ongoing moratorium period on the payment of loan instalments by another six months would cushion the cement producers as they fight the economic fallout of the pandemic.

"Global economies are passing through recession due to the unprecedented impacts of the pandemic and Bangladesh's economy is also hit hard. But we do not know when it will be over," said the letter signed by MD Alamgir Kabir, president of the Bangladesh Cement Manufacturers Association (BCMA).

The BB had previously introduced a loan moratorium facility for borrowers to save them from becoming defaulters due to non-payment of instalments. The ongoing moratorium facility, which is set to expire on 31 December helped the sector to turnaround. 

"The sector is trying to bounce back but the facility will expire later this year. In the given context and considering the present status of the economy and trade, we are urging for an extension of the facility until June 2021.

If extended, the industry, as well as the economy, could strongly recover from the pandemic's fallout, said the letter dated 22 December. According to local industry data, the sector witnessed a decline of 13 per cent between January and May 2020.