Textile millers seek central bank intervention over unpaid $35 million
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Textile millers have sought the central bank's intervention to secure payments for raw materials supplied to apparel exporters under back-to-back letters of credit (LCs) opened by commercial banks.
Bangladesh Textile Mills Association (BTMA) said the banks are withholding over $35 million owed to some 52 textile mills despite having issued maturity dates.
The BTMA, in a letter to the Bangladesh Bank (BB) on Thursday, said that after submitting buyers' acceptance and other related documents, including negotiating papers, the LC-opening banks have yet to make payments.
BTMA President Mohammad Ali Khokon signed the letter addressed to BB Deputy Governor Abdur Rouf Talukder.
"The BTMA member mills -- local fabric and yarn manufacturers -- have been facing severe liquidity crisis due to huge overdue payments, while many have been at risk of facing crisis,” the letter read.
According to BTMA data, payments worth $35.86 million for the supply of yarn and fabric from 52 mills remained overdue.
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