The Minister of Finance of Bangladesh said that the government will take emergency support measures for export companies to help them overcome the negative impact of the financial crisis. The government will announce a support plan within one month. The minister made the remarks during a meeting with the Bangladesh Leather and Products and Shoes Exporters Association. Because the price and demand for leather and products in the international market have dropped significantly, a large inventory of Bangladeshi products has resulted in serious losses to tannery manufacturers. The association is seeking financial cash support for exporters.
In 2008, Bangladesh’s leather industry exported US$284 million, receiving cash incentives of 15-25%. In the first half of the current fiscal year (July-December 2008), exports of leather and products dropped 32% from the same period last year, to only US$104 million.
The association also called for a reduction in bank loan interest and a two-year interest-free loan for factories relocated from urban areas. The minister said the requests would be actively considered.
In 2009, Bangladesh’s exports of garments, jute and products were affected by the financial crisis to varying degrees.
