Good morning. Here's what happened overnight and what you need to know today.
1.
BB Tightens Loan Classification Rules to Meet IMF conditions: Payment failure for three months or 90 days after the due date will now lead to classification of loans regardless of type, according to new rules announced by the central bank yesterday, aligning with international best practices prescribed by the International Monetary Fund (IMF). The new rules will be effective from April next year, replacing current different non-performing loan (NPL) labelling tenures for different types of bank loans. (The Daily Star)
2.
Importers Hit by Dollar Crisis Get 8 Years to Repay Loans: Businessmen involved in import-dependent industries that have suffered losses due to the depreciation of the local currency against the US dollar will get up to eight years to repay their loans. Only importers who brought over goods on condition of delayed loan repayments and suffered losses will get this opportunity, according to a central bank notification issued yesterday. (The Daily Star)
3.
Global toy Market could be Bangladesh's Next Forex Giant after RMG: The booming global toy market remains largely untapped by Bangladeshi entrepreneurs, despite its potential to become the second-largest foreign currency earner after ready-made garments (RMG), provided there is necessary policy support from the government. Industry leaders told The Business Standard that many global fashion retailers also operate toy businesses alongside their fashion items, presenting a significant opportunity for Bangladesh. However, most local companies remain unaware of the sector's export potential. (The Business Standard)
4.
Garment Export to EU Market Risks 20pc Fall: Bangladesh's garment export to the European Union market may fall 20 per cent under a combined effect of the country's LDC graduation and the EU-Vietnam Free Trade Agreement (EVFTA), economists say and show remedies. Vietnam's ready-made garment (RMG) export is currently subject to average 9.6-percent duty on the EU market that will hurtle down to zero-rated taxing by 2027 by virtue of EVFTA. On the contrary, Bangladesh is likely to count a jacked-up 12-percent duty after 2029 for the lapse of duty-free access to the EU under the Union's EBA programme, as a status-change cost the country's graduation from the least-developed country (LDC) club. (The Financial Express)
5.
Agrani Bank Suspends New Lending till Dec: Agrani Bank has decided to suspend fresh loan approvals till December this year with the aim to improve its financial health, the lender's chairman has said. "No new lending will be approved in the fourth quarter of the 2024 calendar year," Syed Abu Naser Bukhtear Ahmed disclosed while sharing his future business plans in an exclusive interview with The Financial Express recently. However, the state-owned commercial bank's existing clients will continue to get limited lending support as working capital to run their ongoing business operations, according to the chairman. (The Financial Express)
6.
Sonali Bank Urges Govt to Issue TK 60b Bonds: Sonali Bank PLC has requested the government to issue bonds worth Tk 60 billion to settle outstanding loans of the sugar mills and Bangladesh Sugar and Food Industries Corporation (BSFIC) with the proceeds, officials said. They said the state-owned bank has to make a hefty amount of provision against the loans due to expiry of the repayment tenure, leaving it with a severe capital shortfall and a negative impact on profitability. Managing Director & Chief Executive Officer of Sonal Bank Md. Shawkat Ali Khan recently requested the finance ministry to take necessary action regarding the issue. (The Financial Express)
----Saju Sarker
BBN/SSR/AD