Under-construction building in Dhaka city. BBN file photo

Dhaka, Bangladesh (BBN) - The central bank of Bangladesh has raised the home loan limit to BDT 20 million from BDT 12 million in view of high prices of construction materials.

As per the revised policy, the maximum per party ceiling in respect of housing finance by the banks will be BDT 20 million, according to a circular issued by the Bangladesh Bank (BB) on Tuesday.

The BB, however, kept unchanged the debt-equity ratio at 70:30, meaning clients will be allowed to receive up to 70 per cent of the total construction cost of homes from commercial banks.

On November 07, the Association of Bankers, Bangladesh (ABB) proposed revising the limit for home loan at a meeting with the central bank.

Talking to the BBN, a BB senior official said the central bank has amended our prudential regulations for consumer financing considering the price hike of construction materials for housing/real estate and in the context of growing higher middle class group, rising per capita income and increasing demand for housing.

The Real Estate & Housing Association of Bangladesh (REHAB), however, welcomed the BB’ latest move, saying that it will not only help the sector but also the country’s 250 backward linkage industries.

The housing market went on a downturn in 2012 for intermittent political instability, a bearish stock market and the government’s apathy towards providing gas connections to new buildings.

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Dhaka, Bangladesh (BBN)- Bangladesh’s apex trade body has urged the authorities concerned for lowering the interest rate on flat purchase loan to 5.0 per.

The appeal was made at the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI)’s standing committee related to the Ministry of Housing and Public Works, held at its headquarters in the capital Dhaka on Tuesday.

The FBCCI also called for rescheduling the repayment period to at least 10 years to help give an impetus to the country’s real estate sector, according to a statement.

The committee also underscored the need for fixing reasonable price for the construction materials including rod, cement and bricks to help the sector grow.

The participants at the meeting also recommended lowering flat registration fees to 6-7 per cent from the existing 12 per cent.

The meeting also decided to organise a housing fair at the FBCCI.

Chairman of the standing committee Liyakot Ali Bhuyan Milon presided over the meeting.

Director in- charge of the committee Rashadul Hossain Chowdhury (Ronni), FBCCI Vice President Muntakim Ashraf, co-chairmen and the members of the committee also attended the meeting.

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Bangladesh Bank Headquarters

Dhaka, Bangladesh (BBN)- The central bank of Bangladesh has relaxed policy allowing Non-Resident Bangladeshis (NRBs) to receive more housing loan aiming to boost the flow of inward remittance.
Under the relaxations, the NRBs are now eligible to avail housing finance facility at a maximum debt equity ratio of 75:25 instead of the debt equity ratio of 50:50.
“In order to enhance housing finance facility to NRBs working abroad, it has been decided that they may avail housing finance facility at a maximum debt equity ratio of 75:25 instead of existing debt equity ratio of 50:50,” the central bank said in a notification, issued by the Bangladesh Bank (BB) on Sunday.
Other instructions in this context shall remain unchanged, it added.
“We expect that it would help enhance the inflow of remittance through encouraging the NRBs to invest more in the sector,” a BB senior official told the FE while explaining the main objective of the notification.
Earlier on Thursday, senior bankers at a round table meeting urged the central bank of Bangladesh to allow a debt-equity ratio of 80:20 for home loan to NRBs so that they show more interest to invest in home in Bangladesh.
They also said it would also help boost inward remittance.
Earlier on December 06, 2015, the central bank asked the banks through issuing a circular to facilitate NRBs for purchasing apartment or lands through taking loans in Bangladesh Taka (BDT).

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Provide low-cost housing for the poor: analysts
The government should take serious steps in solving the housing crisis confronting the lower income groups in Dhaka as very little has been done to provide decent accommodation for the poor, analysts said yesterday. “It is a matter of regret that the government has not allocated a single piece of land to the poor although the rich have gotten land through housing projects in areas such as Dhanmondi, Gulshan, Uttara, and the latest in Purbachal,” said Ahsan H Mansur, executive director of the Policy Research Institute.

Bangladesh’s banks to disburse BDT175.50bn agro-credit in FY 17
The central bank of Bangladesh has unveiled an agricultural and rural credit policy and programme with a disbursement target of BDT 175.50 billion for this fiscal, projecting around 7.01 per cent growth over that of the previous fiscal. Bangladesh Bank (BB) Governor Fazle Kabir declared the policy formally at a meeting with chief executive officers and managing directors of all scheduled banks at the central bank headquarters in the capital on Sunday.

Pay more revenue for better services: Muhith
Finance Minister AMA Muhith said businesses need to pay more in revenue for the fund and fiscal-policy supports they have sought for switchover to green growth in economic advances. Entrepreneurs at a seminar in Dhaka Sunday highlighted challenges and obstacles to green growth and demanded low-cost funds and fiscal- policy support to help industries go green.

BTRC may suspend Citycell operation after Aug 16
The telecom regulator has decided to cancel the spectrum and radio equipment use permission of the country’s oldest mobile phone operator Citycell for non-payment of dues, and advised users of the brand to find alternative measures by August 16. Bangladesh Telecommunication Regulatory Commission officials said that the commission took the decision as Citycell failed to pay Tk 477.51 crore dues despite several reminders.

Bangladesh’s stocks end lower with high turnover
Bangladesh’s stocks ended lower on Sunday, after remaining flat in the past session, as investors remained mostly cautious amid lack of clear direction of the market. After witnessing volatility almost throughout the session, DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), finished at 4,525.35, shedding 12.91 points or 0.28 percent over the previous session.

HSBC closes Chawk Bazar branch
The UK-based HSBC bank on Sunday closed its Lalbagh (Chawk Bazar) branch as part of its plan to close down six of its 13 branches in Bangladesh by 2017. The foreign commercial bank will close two more branches within this year. The branches are in Mymensingh and Narayanganj. The branches are being closed with permission from Bangladesh Bank which had provided no-objection certificate to HSBC.

EU envoy: Security for foreigners shouldn’t be limited to Gulshan
European Union Ambassador to Bangladesh Pierre Mayaudon met with Commerce Minister Tofail Ahmed yesterday urging the government to ensure security in all areas across the country where the EU traders work. The EU envoy’s call followed the deadly terror attacks in Bangladesh, killing 17 foreigners last month. “The authorities need to ensure security in all areas where our citizens work in Bangladesh for smooth operation of trade with the EU countries,” Mayaudon told reporters after a 16-member team led by him called on commerce minister.

E-commerce becomes popular in Bangladesh: Atiur
Former Bangladesh Bank (BB) Governor Atiur Rahman sees the e-commerce has becomes popular gradually in the country after providing policy support by the central bank. “Though e-commerce has already gained ground in the country, but still a long way to go,” Dr. Rahman said while speaking at a book launching programme held at the Business Studies Faculty of Dhaka University in the capital on Sunday.

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Dhaka, Bangladesh (BBN) - Construction of 20,000 flats under Uttara third phase project is progressing fast, Housing and Public Works Minister Engineer Mosharraf Hossain said on Wednesday.

Besides, 62,000 apartments would be built in Purbachal project and 10,000 more flats in Jhilimili project at the directives of the Prime Minister, the minister told journalists during a visit to Uttara third phase project.

"This will be a milestone for the government," he said and hoped that all the construction works would complete in five years.

RAJUK Chairman M Nurul Huda, Housing and Public Words Secretary Golam Rabbani, Public Works Department Chief Engineer Kabir Ahmed Bhuiyan, RAJUK Executive Engineer M Mojaffar Uddin, Uttara Apartment Project Director Engineer Profulla Chandra Bhoumik, local Awami League leader SM Tofazzal Hossain and senior officials of RAJUK accompanied the minister.

The minister expressed satisfaction over the pace of development under Uttara third phase project and said the government is working relentlessly to complete the project.

He said the whole project has been divided into three blocks - A, B and C. Development work is progressing fast in block 'A'. “Activities will start in block 'B' and 'C' in phases.”

BBN/SSR/AD-19Feb14-9:24 pm (BST)

Dhaka, Bangladesh (BBN) - Construction of 20,000 flats under Uttara third phase project is progressing fast, Housing and Public Works Minister Engineer Mosharraf Hossain said on Wednesday.

Besides, 62,000 apartments would be built in Purbachal project and 10,000 more flats in Jhilimili project at the directives of the Prime Minister, the minister told journalists during a visit to Uttara third phase project.

"This will be a milestone for the government," he said and hoped that all the construction works would complete in five years.

RAJUK Chairman M Nurul Huda, Housing and Public Words Secretary Golam Rabbani, Public Works Department Chief Engineer Kabir Ahmed Bhuiyan, RAJUK Executive Engineer M Mojaffar Uddin, Uttara Apartment Project Director Engineer Profulla Chandra Bhoumik, local Awami League leader SM Tofazzal Hossain and senior officials of RAJUK accompanied the minister.

The minister expressed satisfaction over the pace of development under Uttara third phase project and said the government is working relentlessly to complete the project.

He said the whole project has been divided into three blocks - A, B and C. Development work is progressing fast in block 'A'. “Activities will start in block 'B' and 'C' in phases.”

BBN/SSR/AD-19Feb14-9:17 pm (BST)