Good morning. Here's what happened overnight and what you need to know today.
1.
Budget Deficit Financing Bloats Govt Bank Borrowing to Tk 595b: Hefty budget-deficit financing bloats government borrowing to Tk595.16 billion in the first four months of the current fiscal year and much of the money goes for repaying debts to the central bank. Officials said Wednesday the ministry of finance borrowed Tk 595.16 billion from all the scheduled banks through issuing treasury bills and bonds during the July-October period while Tk 391.07 billion was paid to the central bank, according to a confidential report prepared by the Bangladesh Bank (BB) on government borrowing from the banking system. Actually, the government borrowed the money from the banks during the period of this fiscal year partly to meet budget deficit but its net borrowing stood over Tk 204.09 billion during the period. The (Financial Express)
2.
BB Should Prevent Second-Round Effects of Inflation: IMF: The Bangladesh Bank (BB) should take measures to prevent "second-round effects" of inflation, the International Monetary Fund (IMF) said. Thomas Helbling, deputy director for the Asia Pacific Department of the IMF, made the remarks at a press conference in Tokyo on November 1. The official transcript of the press conference was published on Tuesday. Responding to a query from Bangladeshi journalists, Helbling said, "Even though much of the recent increase in inflation was supply-related, given earlier increases in inflation, we think it's important for the central bank to prevent second-round effects." (The Daily Star)
3.
S Alam’s Oil, Sugar Mills Shut as Banks Reluctant to Deal with the Group: The once mighty but currently of tarnished reputation Chattagram-based S Alam group is finding it hard to keep its factories running as banks are taking a hard stance dealing with it. S Alam or Saiful Alam Masud, once a highly influential figure in Bangladesh's financial sector and chairman of S Alam Group was formerly a controlling force behind seven banks. Masud is alleged to have drawn over Tk1 lakh crore from various banks during Sheikh Hasina's more than 15-year regime. According to S Alam Group's website, it owns nearly two dozen companies, with total assets valued at around Tk1.5 lakh crore. These companies operate numerous factories in Chattogram and other areas. (The Business Standard)
4.
With Trump’s Win, Bangladesh Gets More Investment Queries from China: Chinese entrepreneurs are increasingly inquiring with Bangladeshi businesses over scope for factory relocations, joint ventures and fresh investments, apprehending that the new Trump administration might further hike tariffs on their exports to the US. The Chinese also seek to take advantage of the fact that a European Union (EU) directive on corporate sustainability due diligence, which was already in effect, would be applicable for Bangladesh after two years in 2026. The directive aims to foster sustainable and responsible corporate behaviour in companies' operations and across their global value chains. (The Daily Star)
5.
Westin, Sheraton, Sea Pearl Suffer Business Decline in Jul-Sep: The Westin Dhaka, Sheraton, and Sea Pearl Beach Resort experienced a downward trend in the first quarter of this fiscal year, as the July-August mass upsurge and prolonged floodings led to a decline in business for luxury hotels. As a result, the owning companies – Unique Hotel and Resort and Sea Pearl Beach Resort – incurred losses during the three months through September. Unique Hotel owns The Westin Dhaka, Sheraton, and Hansa, while Sea Pearl Beach Resort operates a hotel in Cox's Bazar. According to the unaudited financial statement of Unique Hotel for the July-September quarter, The Westin Dhaka reported a revenue decline of over 37%, totalling Tk30.68 crore, compared to the same period last year. (The Business Standard)
6.
BSRM Steels to Open New Plant in Jan, Expects a Boost to Revenue: BSRM Steels is going to launch its new plant at Mirsarai in January next year of an annual production capacity of 0.6 million tonnes of MS (Mild Steel) Rods, with an expectation for revenue boost. The country's largest steel manufacturer builds the new re-rolling mills at the cost of around $217 million, aiming to raise its share in the local steel market from 23 per cent to 34 per cent. In a stock exchange filing on Wednesday, the Chattogram-based steel manufacturer said the board of directors had decided to start commercial operation of the plant on January 1 next year. (The Financial Express)
----Saju Sarker
BBN/SSR/AD