Friday morning news highlights of Bangladesh

Last updated: May 29, 2015

Bangladesh Saturday morning news

Dhaka, Bangladesh (BBN) - The BBN (Bangladesh Business News) has prepared the morning news highlights compiling reports, published by different newspapers and news portals in Bangladesh.

Tk 900cr recapitalisation fund for six sick state banks

The finance ministry has decided to inject Tk 900 crore into six cash-strapped public banks suffering from huge capital shortfall. The finance ministry officials said the move would shore-up the banks in the short-term amid soaring defaulted loans weighing down their normal banking operations. A meeting on Wednesday, presided over by the finance division secretary of the finance ministry Mahbub Ahmed, decided to sanction the recapitalisation fund, against a demand of Tk 3,500 crore from the respective banks. ‘The recapitalisation fund of Tk 900 crore will be sanctioned within a couple of days as the beleaguered banks are mired in capital crunch,’ a senior official in the finance ministry told New Age on Thursday.

Muhith sight set on 5.0pc budget deficit
Finance Minister AMA Muhith now looks to keep the deficit in the next budget at 5.0 per cent of the gross domestic product (GDP) by putting its outlay at Tk 2.95 trillion (295,000 crore). The finance minister instructed the Finance Division this week to keep the deficit within 5.0 per cent by showing the budget size at around Tk 2.95 trillion, people involved with preparation of the budget for the fiscal year (FY) 2015-16 told the FE on Thursday. The division earlier had done some arithmetic on the size of the budget. Some time the size exceeded Tk 3.0 trillion and then again it fell below that mark. The division did it as persuaded by different quarters.

Biman to see profits after five years

Bangladesh Airlines, the country's flag carrier, is on track to log in profits this fiscal year, putting an end to its five-year loss-making streak. The airline is likely to register Tk 245 crore in profits, according to a draft economic review. When asked, Kyle Heywood, managing director of Biman, said: “The projected profit amount till June this year is something near the amount. The exact amount of profit though will be known after the final audit.” The reasons for the profit include more flights on profit-making routes, a decrease in fuel costs and operation of last year's hajj flights using Biman's own aircraft, he added.
MoU to stop human trafficking likely during Modi’s visit
India is likely to sign three Memorandum of Understanding (MoU) with Bangladesh to stop human trafficking, curb fake currency circulation and prevent crimes on coastal areas during the upcoming visit of Indian prime minister to Bangladesh.
The Ministry of Home Affairs is working on it. The draft of the MoUs have been prepared in several meetings held recently between the ministries concerned, confirmed a ministry source. According to the source, DIG (Crime) of Police Headquarters and National Investigation Agency (NIA) high official will sign the MoU on behalf of their respective countries. An initiative was taken to sign these three MoU during the ex-Indian Prime Minister Manmohan Singh’s visit to Bangladesh in 2011. But it failed. This time, the officials said, there is a strong possibility that the MoU will be singed.

Bangladesh Bank elected AFI SME Finance Working Group Co-chair

Alliance for financial Inclusion (AFI) the global network of financial regulators has chosen the Bangladesh Bank (BB) as co-chair in one of its major policy area- the SME Finance working group- on Wednesday for the next two years. “This is in recognition of the breakthrough policy intervention by Bangladesh Bank to improve access to finance to the MSMEs and Women entrepreneurs as well as its contribution and leadership towards knowledge exchange and mutual learning in the area of MSME and women entrepreneurs lending,” the central bank said in a statement on Thursday.  The central bank of Bangladesh will take the position of Chair of the working group in 2016. Bangladesh Bank was chosen by the network members over India, Kenya, Peru and Philippines, the four other candidates, it added.

BB asks banks to stop overstay of staff at office
The central bank has asked the commercial banks not to force their employees, particularly female staff, to stay at office after 6.00pm to ensure a congenial working condition for them. The commercial banks will have to pay overtime allowance and ensure security of their female staff, if anyone has to stay at office after stipulated hours due to special necessity, according to a directive, issued by the Bangladesh Bank (BB) on Thursday.

Govt to slap 2pc advance tax on rice, sugar, fuel oil import

The government is likely to impose advance income tax at source on import of a group of products including rice, wheat, sugar and petroleum oil in the upcoming national budget to increase revenue collection from source tax sector, officials of the finance ministry said. They said that AIT might be imposed at different rates up to five per cent for different products considering the impact of the products on consumers.

A tool to create jobs, cut poverty

Social business has created hopes of eliminating poverty from the world by generating employment, speakers said at a discussion yesterday. Many countries want to adopt the idea of social business, a brainchild of Nobel laureate Prof Muhammad Yunus, they said, while sharing their experiences of promoting social business in their countries such as the USA, China, France and Germany. They spoke at a plenary session on “sharing experience -- social business movement around the world” as part of the programmes of the sixth Social Business Day at Bangabandhu International Conference Centre in Dhaka.

BBN/SSR/AD-29May15-6:14 pm (BST)

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