The number of letters of credit (L/Cs) has fallen in the last six weeks in Bangladesh since a new government took charge of the country on a temporary basis.

Bangladesh is under an interim government until polls scheduled for January. The run-up to the elections has been violent and tense with rival activists clashing almost daily. At least 44 people have been killed and hundreds injured since late October.

Negative impacts

Quoting a senior bank official, the Financial Express said the number of both export and import L/Cs has dropped since 28 October when political unrest over the interim government began.

Other segments of the financial sector have suffered a negative impact too according to the financial daily. Overall insurance business is down 30-40 per cent with marine insurance down about 50 per cent due to disruptions to export and import business.

Level playing field

Bangladesh's interim government has failed to act neutrally ahead of January elections, the US ambassador Patricia Butenis to Bangladesh has said in comments reflecting criticism of a multi-party opposition alliance that has demanded electoral reforms. "Unfortunately, the caretaker government has not always conducted itself neutrally, and the nation has suffered as a result," she said.

The UN meanwhile has warned of pre-poll violence in Bangladesh unless the political parties reach a compromise and the election commission ensures a "level playing field".

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.