RMG exports: Bangladesh earned $3.95 billion in July

The total RMG export during July in FY 2023-24 stood at $3.95 billion, up from $3.37 billion dollars in the same period in FY 2022-23, indicating 17.43% year-on-year growth. RMG export earnings from woven garments in July FY 2023-24 grew by 11.54% and reached  $1.68 billion from $1.51 billion in July FY 2022-23. At the same time, knitwear export grew by 22.24% year-on-year and reached $2.27 billion during the mentioned period. The growth is certainly impressive, though the global economic scenario is portraying a contrasting outlook. Though inflation has started to ease off in our major export markets and the economic indicators started stabilising, yet import of apparel by USA and EU is showing a major downtrend. Therefore, it’s quite challenging to forecast the market and I personally think that we need to follow a cautiously optimistic approach for the rest of 2023, as apparel and overall global trade may see some dip compared to last year.

Source: https://www.tbsnews.net/economy/rmg/rmg-exports-bangladesh-earned-395-billion-july-says-bgmea-682014

Bangladesh Bank raises lending rates for two export support schemes

The central bank has increased the interest rates on loans taken from both the Tk5,000 crore Pre-shipment refinance scheme and the Export Facilitation Pre-finance Fund (EFPF) instituted for export-oriented industries during the Covid-19 period.  The Banking Regulations and Policy Department of Bangladesh Bank issued two separate circulars today (13 August) instructing to increase the interest rate. As per the new policy, interest rate on pre-shipment refinance loans will be maximum 5% at a customer level. As per the earlier policy, this rate was 3.5%. Besides, the interest rate has also been increased at the bank level from 0.5% to 2%. At the same time, the customer-level interest rate on EFPF loans has been increased from 4% to 5%.  Besides, banks have to pay 2% interest to the central bank if they want to withdraw money from this fund, up from 1.5%. On April 13, 2020, the central bank set up a Tk5,000 crore pre-shipment refinance scheme to stave off the impact of the Covid-19. Customers could avail such loans to meet the pre-shipment costs of export products. Banks generally charge 7-8% interest on export loans.

Source: https://www.tbsnews.net/economy/banking/bb-raises-lending-rates-two-export-support-schemes-681926

South Korean company to invest $8.6m in BEPZA Economic Zone

South Korean company Dongwoo BD Limited is going to set up a shoe accessories manufacturing industry in BEPZA Economic Zone (EZ) with an investment of $8.62 million, reports BSS. In this connection, Bangladesh Export Processing Zones Authority (BEPZA) signed an agreement with Dongwoo BD Limited at BEPZA Complex in the city on Sunday. In presence of the Executive Chairman of BEPZA Major General Abul Kalam Mohammad Ziaur Rahman, Ali Reza Mazid, member (Investment Promotion) of BEPZA, and Kim Dong Kyu, chairman of Dongwoo BD Ltd, signed the agreement on behalf of their respective organisations. This fully foreign-owned company will create employment opportunities for 513 Bangladeshi nationals and will produce annually 3.6 million meters all kinds of PU Synthetic Leather.

Source: https://today.thefinancialexpress.com.bd/trade-market/s-korean-co-to-invest-86m-in-bepza-ez-1691940999