Japanese firms in Bangladesh face fund crisis: Envoy
Japan wants Bangladesh to allow its companies operating here to avail long-term loans for working capital from their parent companies abroad to tackle the impacts of the Covid-19 pandemic.
Ito Naoki, Japanese envoy in Bangladesh, told this in a recent letter written to the Governor of Bangladesh Bank requesting him to do it as early as possible.
He said Japanese companies could not continue their business as usual in the country and are facing serious shortage of working capital due to the limited cash flow.
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"The Japanese companies like Bangladeshi companies are now taking responsibility to keep paying salaries and other overhead costs for their employees and offices according to local rules and regulations," he said.
"But I have learned most of them will be unable to continue the payment from May 2020 if they cannot find additional fund sources."
Amid this condition, the envoy requested the BB to permit foreign companies to procure long-term loans (more than one year) from their parent companies regardless of their time period of operation in the country.
Presently, Bangladesh allows this loan for foreign companies during the first three years of their operation.
