Dhaka, Bangladesh (BBN) – The BBN has prepared the morning business round up compiling reports, published by different newspapers and news portals in Bangladesh.
Higher imports, drop in remittance inflow put BOP under pressure: The country's balance of payments (BoP) surplus stood at US$ 2.7 billion at the end of the July-January period of the current fiscal (2013-14) compared to that of $2.9 billion recorded at the end corresponding period of the last fiscal, according to the Bangladesh Bank's latest statistics. Economists have attributed the fall in Bop mainly to the decline in the inflow of remittances and increase in the outflow of capital in the form of import payments.
WB nudges nine slow projects: The World Bank in its latest appraisal found the progress of nine of its 22 development projects in the country “unsatisfactory” and accordingly drafted in action plans to expedite the projects. Among the nine problem projects is the Siddhirganj Peaking Power project, for which the multilateral lender has committed $350 million in October 2008. As of February 11, only 35 percent of the funds have been used up, due to “slow implementation of the combined cycle power plant and low disbursement”—a travesty in a country that has been counting huge losses every year for rental power plants. To ensure completion of the project by March 2016, the WB set deadlines for the construction of the plant.
Retailers’ teams to talk pledges, conspiracy theory in April: High-ups of North American and European retailers groups are coming to Dhaka in early April to discuss garment factory safety inspection issue following government’s and factory owners’ criticism of strict inspection standards and allegation of conspiracy. Garment factory owners and commerce minister Tofail Ahmed recently came down heavily on the two groups — EU Accord on Fire and Building Safety and North American Alliance for Bangladesh Worker Safety — after their team of experts started safety inspection of around 2,300 garment units.
RMG units need Tk 40b to meet fire safety standards: The country's readymade garment (RMG) factory owners are required to spend at least Tk 40 billion to meet fire safety standards set by various international buyers and their alliances after the deadly Rana Plaza incident, stakeholders say. Fire Service and Civil Defence officials have swooped on many apparel factories and asked their owners to install various safety equipment including fire door, busbar tracking system, automatic fire sprinkler system, and fire extinguisher, they added.
DSE to launch T+2 settlement time on April 16: Dhaka Stock Exchange (DSE) is going to introduce T+2, which will allow maturity of shares in two trading sessions, from April 16 this year scrapping its existing T+3 trading cycle. DSE officials said after the introduction of T+2 trading cycle investors would be able to sell shares after two trading sessions of purchase instead of present three days.
BB asks banks to give plan on stock investment cuts: Bangladesh Bank has recently asked scheduled banks to submit business plan on how to bring down their excess investment limit in the capital market by July 2016. To this end, the central bank issued separate letters in the last few weeks to managing directors and chief executive officers of the banks, whose investment limit was now hovering higher than the BB’s ceiling, asking them to place their plan.
As of December last year, banks and their subsidiaries’ exposure stands above 50 per cent of their capital on an average. It stands at 150 per cent for many.
Primark to give away $9m this week: British clothing retailer Primark will start paying compensation to the Rana Plaza victims within this week.
The retailer will disburse $9 million to 580 workers (or their dependants) of New Wave Bottoms, one of the five garment units that were housed in the ill-fated Rana Plaza building. “The payment will be met in full, in cash, directly by Primark and will amount to some $9 million,” the retailer said in a statement yesterday. Primark is giving away the compensation only to the workers of New Wave Bottoms as the retailer used to source garments from this unit on the second floor of the building. Besides this amount, Primark has already disbursed $2 million to the workers or their families immediately after the collapse of the building.
Sunday’s major market indicators of Bangladesh: The call money rate remained unchanged on Sunday while the US dollar was stable against the local currency in the inter-bank market, treasury officials said. The call rate ranged between 5.25 per cent and 8.25 per cent on the day which was same of the previous level. But most of the deals were made at rates between 7.25 per cent and 8.25 per cent on the day, they added. The US currency was stable against Bangladesh Taka (BDT) due mainly to low demand of the greenback in the inter-bank foreign exchange market.
BBN/SSR/AD-18Mar14-9:08 am (BST)
