The New Nation - Internet Edition

UNB, Dhaka

Importers in trouble following a sharp decline in commodity prices on the international market would be treated liberally and advanced fresh import credits so that the country does not face shortage of essential commodities.

Bangladesh Bank Governor Dr Salehuddin Ahmed held out the assurance when a correspondent during his meeting with senior journalists drew his attention to the plight of importers in the wake of the slump of price of the commodities for the import of which they have earlier opened high-rated import LCs.

"We are aware of it. The financing banks would be advised to reschedule the loan of affected importers and also extend fresh loans for import so that the country does not face crisis of essential commodities," he said.

However, the Governor said, the importers will not be affected much. "They have earned a good profit when the price went up. Taking plus-minus into account they will not be much affected." About the current global recession that knocked down market prices the central bank chief said, "We do foresee no immediate effect on Bangladesh."

Expressing cautious optimism he said it is not correct that the garment sector will be affected in the short term. But it may be affected if the recession lingers.

"Remittance this month (October) has not declined. Our labour market in the Middle-East and Saudi Arabia is unlikely to be affected much," added the Governor.

"Still we are closely watching the situation. It is not Bangladesh Bank alone but different sectors of government are involved. We shall meet soon to review the situation," said Dr Salehuddin.

He admitted that if the recession prolonged, it would leave strain on the national budget. The flow of external grants that financed social sectors, including health and education, could come down.

Dr Saleh refrained from making any comment on a touchy issue like Trust Bank controversy in which ACC chairman and former Chief of the Army Staff Lt Gen Hasan Mashhud Chowdhury was accused.

"Directly, we have no information," he said when a correspondent wanted to know if the Bangladesh Bank had taken action against any commercial bank in the event of heavy losses in foreign currency transactions. "Central Bank has no role on any individual."

About retrieval of huge amounts of money funneled abroad by plutocrats the Governor said it is a difficult task. Even then, some amounts have been brought back with cooperation of other banks following the World Bank's initiative to check corruption and money laundering. More are on the way.

But he would not divulge the amount already retrieved and the amount in the pipeline.

The governor admitted that the commercial banks have social responsibility and assured that corporate bodies would be encouraged toward that.

Earlier, Dr Salehuddin explained various reform measures taken by the central bank to regulate banking and financial sectors, which he said has started paying the dividends.

Deputy governor Nazrul Huda and senior executives were present at the exchange of views.