Bangladesh Bank governor Atiur Rahman on Sunday warned banks’ bosses of stern legal action against them if they provide loans to non-compliant garment factories.
‘Stop lending to non-compliant garment factories where conditions are not suitable enough to ensure safety of the workers and employees, or face punishment,’ Atiur told the chief executives of banks while addressing a seminar in the city.
Bangladesh Bank Training Academy and Bangladesh Institute of Bank Management with support from industries ministry managed European Union funded INSPIRED project organised the two-day seminar.
The issue of discussion on the first day was SME banking strategy. The theme for the second session of the seminar on Thursday will be SME credit policy and loan origination.
Andrew Barnered, charge de affaires of the delegation of the European Union to Bangladesh, and AKM Rafiqul Islam, deputy secretary of the industries ministry, also spoke at the seminar.
Addressing the seminar, the governor said since many garment owners are involved in banking businesses, the CEOs and the managing directors of banks should be responsible for ensuring that no non-compliant garment factories get bank loans.
The governor gave the directive against the backdrop of the tragic building collapse at Savar where most of victims are the workers of the five garment factories inside a house, which was built flouting rules.
Atiur advised bankers to collect information about the building and establishment of their clients in garment sector to take proper steps so unscrupulous people cannot take any advantage from the banks at the cost of risking the country’s apparels industry.
Earlier in December, Bangladesh Garment Manufacturers and
Exporters Association identified 850 non-compliant garment units and asked them to improve working conditions or face closure.
‘I wish the Rana Plaza accident would be the last one, and we would no way want to be the witnesses of such tragic incident again,’ the governor said. He also instructed all banks to come forward for helping the people affected in Savar tragedy.
Speaking on SME banking strategy, he said the central bank had taken a coordinated approach for SME development.
-With New Age input
