"RMG manufacturers want ban on Deferred Payment System", 17 February 2024

Stakeholders in the RMG industry have strongly advocated for an end to the deferred payment system in exports, arguing that it primarily benefits buyers. Describing the system as excessively risky for exporters, they have called upon the Bangladesh Bank to issue a circular banning its use.... 

Mohammad Hatem, the executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), highlighted that under this system, buyers engage in importing and conducting business for extended periods of six to seven months before settling payments.

“Among the buyers, if someone declares himself bankrupt under Chapter 11, the manufacturers of the country will be mainly affected by this decision which is very risky for us,” he added.

He called upon Bangladesh Bank to stop this system with a circular and this system also increases internal competition among manufacturers which is a threat to the industry...