The central bank yesterday asked all commercial banks -- including the scam-ridden Sonali Bank -- to give acceptance to genuine inland bill purchases (IBPs) for the sake of the country's exports.

The instruction came at a meeting with the leaders of the apparel exporting and bankers' bodies at the Bangladesh Bank (BB) headquarters. When an exporter receives an order, he/she opens a 'back-to-back' letter of credit (LC) account at a bank to procure the raw materials to fulfil the order.

The exporter then sells the 'back-to-back' LC on to banks at a discounted rate, which is called the IBP.

SK Sur Chowdhury, deputy governor of the BB, told journalists that the commercial banks cannot delay the purchase of genuine bills under any condition.

“Some commercial banks showed reluctance towards the purchase of acceptance bills after the loan scam of Hall-Mark Group. But, there is no reason to be panicky as every indicator of the banking system is giving positive signs.”

The central bank is yet to bring out a fresh circular, though, regarding the development, added Chowdhury.

The BB deputy governor further said Sonali Bank, too, will start releasing the stalled funds against the IBPs soon.

“Banks will pay special attention when it comes to the acceptance of the garment sector's IBP so that businesses do not face any crisis before the Eid festival,” said Nurul Amin, chairman of Association of Bankers Bangladesh, a platform of chief executives of commercial banks.

“The environment of mistrust that has been created in the bankers and clients relationship due to the Hall-Mark loan scam is not right,” Amin said, while pressing Sonali Bank to accept the valid IBPs.

Shafiul Islam Mohiuddin, the president of Bangladesh Garment Manufacturers and Exporters Association, said the garment exporters are facing difficulties as some commercial banks are showing reluctance in purchasing IBPs.

Mohammad Hatem, the acting president of Bangladesh Knitwear Manufacturers and Exporters Association, and Jahangir Alamin, the president of Bangladesh Textile Mills Association, were also present.

News: The Daily Star/Bangladesh/16th-Oct-12