Beximco issues letter to four advisors and governor for credit support

The  business conglomerate Beximco has said that they were concerned about their export activities as they did not have adequate working capital for the purpose. As a result, they were losing business.  Beximco's apparel and textile  division has sought an extension on export-related loan support.

The Beximco Group sent letters to four advisors of the interim government and the governor of Bangladesh Bank. Signed by Beximco managing director Osman Kaiser Chowdhury, the letters were sent to the finance advisor Salehuddin Ahmed, home advisor Lt Col (retd) Md Jahangir Alam Chowdhury, industries advisor Adilur Rahman Khan, labour and employment advisor Asif Mahmud Shojib Bhuiyan and the Bangladesh Bank governor Ahsan H Mansur from Beximco's textile and apparel division.

Issued on 19 September, the letter said that they would lose business unless they could resume export-oriented production. If not, they may even have to start downsizing manpower, the letter said.

It was said that after the fall of Sheikh Hasina's government on 5 August, Beximco Group's export-oriented apparel factory was looted and set on fire. It said they had no working capital left to carry out further export activities. Customers had already started moving their orders from Bangladesh to other alternative destinations and they were not being able to ensure production according to their capacity.

The letter stated that they had worked out their sales forecast and the cash inflow up till December 2024 and found cash deficit to meet expenditure at the existing level.

The Beximco Group in the letter said that they needed Tk 690 million to pay workers wages for August. They received a loan of Tk 550 million from Janata Bank and added the remaining amount themselves from funds earmarked for clearance of imported raw materials.

As regular credit facilities to Beximco Group had been halted, they were concerned about payment of wages for September. They said they would require Tk 650 million for the purpose.

They said they had requested Janata Bank to deduct and build up this amount of Tk 650 million from their export proceeds which have already been received and are to be received until 6 October for payment of wages of the current month.

The letter referred to the interim government's commitment to keep industrial production running unabated. It said, this declaration of the country was an inspiration to continue with their production activities.

After the fall of the Sheikh Hasina government on 5 August, the bank accounts of Salman F Rahman, advisor to the former prime minister Sheikh Hasina and chairman of Beximco Group, were frozen. Details of Beximco Group's banks accounts have also been sought.