The revival of around 400 garment factories in Bangladesh that have suspended production due to banking complications could create employment for an additional one lakh people, industry leaders said.

The issue was brought to the fore at an exchange of views meeting held on September 7 at the BGMEA Complex in Uttara.

The meeting, chaired by Bangladesh Garment Manufacturers and Exporters Association president Mahmud Hasan Khan, was attended by more than 70 member factories, along with vice-president Md Shihab Uddoja Chowdhury, director Faisal Samad, standing committee on exit policy chairman Asif Ibrahim, and standing committee on one stop cell chairman Mozammel Haque Bhuiyan.

During the discussions, members called for an extension of the default loan repayment period from three years to ten years under the relevant Bangladesh Bank circular, noting that repayment within the existing timeframe was unrealistic in the current economic climate.

BGMEA leaders also pressed for a reduction in the down payment requirements for loan settlements.

Concerns were raised over factories being subjected to forced loans under irregular circumstances, which in many cases have led to cheque dishonour and money loan lawsuits.

Exporters warned that such complications were hampering business operations and urged the BGMEA Board to take an active role in resolving the matter.

Participants stressed the need for a tolerant exit policy to allow struggling entrepreneurs to close businesses with dignity, while also insisting that policy support from Bangladesh Bank should not be confined to large exporters but extended to small and medium-sized factories as well.

The longstanding problems of 77 sick factories in the sector were also highlighted as an issue requiring urgent attention.

Addressing the meeting, BGMEA president assured members that the Board of Directors would soon hold talks with the relevant authorities to pursue the issues raised.

He also urged factories facing banking-related challenges to submit their problems to BGMEA in writing for prompt follow-up.