The country’s banks have no liquidity. Customers are coming back from the banks and are being aggrieved. Foreign banks do not guarantee open Letters of Credit (LCs). Murder cases were registered against many businessmen. Bank accounts of many businessmen were suspended. Fearing the future uncertainty, many of them went abroad. Many entrepreneurs also went hiding. Many people can’t go abroad for business due to fear of harassment at the airport. It has been alleged that businessmen are being harassed instead of cooperating in controlling commodity prices. After all, businessmen in the country are under pressure which is an ominous sign to the economy.
Exporters have suggested helping the businessmen to improve the country’s business and investment situation. They said businessmen should be treated as associates of the government. Otherwise, there might be a slowdown in business with a decrease in new ventures. If the current situation continues, it likely impact the employment of the people alongside affecting the country’s economic growth. In this circumstance, multifaceted pressure should be reduced on the business persons. The crisis of trust should also be removed. Although the supply has slightly increased, Bangladesh is struggling with the dollar crisis. The interest rate has been increased continuously to reduce the high inflation. As a result, high interest rates are creating investment stagnation. Mistrust, apprehension, fear and anxiety are spreading among businessmen and entrepreneurs in various unwanted incidents including filing false cases against innocent businessmen. As a result, business expansion and new investments in the country are at a standstill.
While talking to Bangladesh Pratidin, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem said, “There is panic among the businessmen over cases and arrests. The cases are being lodged by someone or group. Those who have not got extortion in the past or have personal conflict with the traders are behind these cases. We talked to the government. No arrest will be made unless found guilty by investigation. But several businessmen have already been arrested. We think this is unfair.”
“This is sending a wrong message to the businessmen. This wrong message is also going to foreign buyers. As a result, the country's economy will suffer. A panic is created in the business community. Many will be bound to stop doing business in the country and go abroad. The country’s trade and commerce will be affected seriously. We think it is harming the country's overall economy. Freezing accounts of the businessmen without specific complaints will create a serious economic crisis.” he added.
Thousands of crores of Taka have been withdrawn from several banks during the tenure of the previous government. Customers of these banks are not able to withdraw money and they are returning with empty hands after being aggrieved. Hundreds of crores of Taka from the various business organisations and industries are stuck in their accounts in these banks.
Many customers returned yesterday (Tuesday) without withdrawing money from the private commercial Social Islami Bank's Netrokona branch. Just three days ago, the manager of Social Islami Bank’s Agargaon branch cried as customers became furious as the branch was not able to pay the money of the depositors.
Despite the increasing supply of dollars in the country, several banks are unable to open LCs. Foreign banks are not guaranteeing them. As Bangladesh’s 'Country Rating' is poor and not up to international standards, the country's banks require guarantees from foreign banks to open LCs. In terms of imports as a 'Third Party Guarantee', Bangladeshi banks have the most business with the United Arab Emirates-based Mashreq Bank. This influential bank of the Middle East is the LC guarantor of most of the banks of Bangladesh. Mashreq Bank has closed the credit limit of many Bangladeshi banks due to current political unrest and instability in the banking sector.
According to the executives of the banks, some other banks in India, Singapore, Saudi Arabia, and the United Arab Emirates have reduced credit limits. Among European banks, Germany's Commerce Bank has the most business with Bangladesh. This bank is also not taking LCs of some banks in Bangladesh.
Murder cases were filed at various places against the businessmen who have contributed significantly to the country's economy. The owners of the large industrial groups have been accused in the murder cases to harass them and embarrass the interim government. A vicious circle is trying to create instability in the business and industry sectors. Businessmen are being sued in cases indiscriminately. The bank accounts of the owners of large industry groups are being frozen and summoned. Apart from these, bank transactions of all family members including wife and children of the businessmen are stopped and all types of transaction information and account opening documents are being sought. For these reasons, there is panic among the businessmen. Many of them went abroad and many went hiding fearing harassment.
Dhaka Chamber of Commerce and Industry (DCCI) President Shams Mahmud said, “We have noticed that false and baseless cases are being filed against many businessmen. They have no relations with politics. The cases are being registered despite the government's directive that no baseless case can be filed. Businessmen won’t get confidence if this trend continues.”
Shams Mahmud, also managing director of Shasha Garments Limited, further said, “The government should sit with all types of business persons. The members of the top chamber are being invited. There are exporters, local traders, small and medium entrepreneurs, and small traders. They have different problems. A policy should be formed to assist every businessman after being informed of their problems separately. Funds are not available at many banks. Alternatives can be discussed. Apart from this, improvement of law and order situation, adequate fuel and easy availability of funds should also be ensured,” he added.
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