Standard Chartered Bank has disbursed USD Denominated Pre-Shipment Loans, to support the Ready-Made Garments industry face the challenges imposed by COVID-19.
More than 20,000 workers received their multiple months' salaries and festival bonuses on time through these loans.
The Bank's clients can avail one-year liquidity support for payment of wages, utilities and other operational expenses under this programme, with a moratorium period of three months.
As the COVID-19 pandemic struck in 2020, the apparel supply chain across the world was disrupted.
Retail stores shut down across the US, UK, Germany and other key markets, resulting in deferment and cancellation of orders which impacted RMG exporters in Bangladesh as well.
Standard Chartered leveraged its international network of select large global buyers and its long-standing relationship with top retailers of the country, the BGMEA and Bangladesh Bank, to implement this collaborative COVID-19 response finance programme.
The facility enabled:
Easy access to funds for salary and other operating expenses
USD-denominated facility low-cost financing with natural hedge against currency volatility
Extended tenor of one year which includes a three-month moratorium, giving the clients much needed flexibility in an uncertain operating environment
Naser Ezaz Bijoy, chief executive officer, Standard Chartered Bank, Bangladesh, said "Standard Chartered Bank prides itself on the Here for Good promise, and there has never been a more important time to deliver on that promise. I am extremely grateful for the timely support we got from Bangladesh Bank to offer these low-interest USD denominated loans to our exporter clients,"
"As the largest international bank in the country, with our unique global network and our relationship with buyers, we had an important role to play during this crisis. The RMG sector continues to be the lifeblood of Bangladesh economy and I am happy and proud that our initiatives were able to support the sector in its time of need," he added.