HSBC Bangladesh has announced a set of measures to help textile and garments clients tide over the economic fallout of COVID-19 pandemic. The lender will provide special short-term loans of up to one year with principal moratorium for four months. It will also allow three months' moratorium against existing term loans enjoyed by businesses belonging to the textile and garments sector, according to a press release issued by HSBC Bangladesh.

During the moratorium period, clients will not be required to give any installment and the lender will not seek any repayment amount from them as well. HSBC will provide up to 90-day extension of import liability maturing in next three months where export shipments are delayed.

It will work to ease cash flow pressures faced by businesses and help customers tackle the market uncertainties, including disruptions to their supply chains. To ease the pressure on Bangladeshi economy, clients will be allowed to enjoy trade relief in the form of waiver of letters-of-credit (LCs) commission and margin requirements for the import of medicine, medical equipment and accessories used to treat COVID-19.

Customers facing delivery disruptions owing to late shipment and presentation of documents will have amendment fees on LCs waived, said HSBC, one of the largest banks in the globe serving more than 40 million customers in 64 countries and territories of the world.

The bank will provide support to customers to onboard onto HSBC's digital platforms to enable the flow of trade to continue. Along with the textile and garments sector, the lender will actively evaluate and try to introduce specific initiatives to support its customers in other sectors as required.