HSBC extends support to beleaguered garment sector
HSBC Bangladesh yesterday announced a set of measures to greatly help its textile and garments clients tide over the financial fallout from the coronavirus pandemic.
The lender provides special short-term loans of up to one year with principal moratorium for four months, which can be utilized for the intended purpose of supporting payroll bill and utility payment.
Although the Bangladesh Bank has recently asked banks to increase similar support to businesses, which are being battered from all side by COVID-19, the British lender may be the initially to formally announce measures of its.
The bank may also allow three months' moratorium against the prevailing term loans enjoyed by businesses owned by the textile and garments sector, according to a news release issued by HSBC Bangladesh.
Through the moratorium period, customers will not be required to give any instalment and the lender will not seek virtually any repayment amount from their website as well.
HSBC will provide up to 90-evening extension of import liability maturing in next 90 days where export shipments are actually delayed.
It will do the job to ease cashflow pressures faced by businesses and help buyers tackle the marketplace uncertainties, including disruptions with their supply chains.
To help ease the pressure about Bangladeshi economy, customers will be allowed to enjoy trade comfort in the type of waiver of letters-of-credit (LCs) commission and margin requirements for the import of medication, medical equipment and accessories used to take care of COVID-19.
Clients facing delivery disruptions owing to late shipment and display of documents will have amendment charges on LCs waived, said HSBC, one of the largest banks in the globe serving a lot more than 40 million customers found in 64 countries and territories of the world.
"We 're going through challenging occasions in Bangladesh and so are focused on continue our support to the local community to the best of our capacities," explained Francois de Maricourt, ceo of HSBC Bangladesh.
HSBC empathise with its customers who've to manage the turbulence due to this unforeseeable outbreak and it is acquiring actions to greatly help alleviate their monetary burden, he said.
The loan company recognises that lots of customers may need to run their banking in a digital norm to keep their business where conventional paper flow is not possible as a result of unprecedented situation arriving from the virus outbreak.
Against the backdrop, the bank provides support to customers to onboard onto HSBC's digital systems 00 HSBCnet -- to permit the flow of trade to keep.
Although some clients remain using the paper-based banking, the platform is completely paperless. Romance managers of HSBC Bangladesh will help its clients operate the digital system.
Along with the textile and garments sector, the lending company will actively evaluate and make an effort to introduce specific initiatives to aid its customers in different sectors as required.
"We happen to be increasing our support to the business enterprise community to navigate this challenging journey alongside one another. The announcement is usually another testament of our determination to the clients in the countrty," said Md Mahbub ur Rahman, the CEO designate of HSBC Bangladesh.