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.
Tough test for economy
To have a glimpse of the country's bleeding economy, look at Shohagh Paribahan. The long-distance bus operator now runs buses between 7:00am and 3:00pm daily, meaning no bus can leave the capital after 3:00pm. Its night coach service has been suspended on government directives. The company usually runs 15 luxury trips on the Dhaka-Chittagong route, but now it has come down to just two trips as passengers travel only if there is an emergency.
Bangladesh’s forex reserve down to $22.13bn after ACU payment
Bangladesh made a routine payment of more than US$1.0 billion to the Asian Clearing Union (ACU) against imports during the January-February period of the current calendar year, officials said. After the payment, the country's foreign exchange (forex) reserve came down to $22.13 billion on Thursday from $ 23.07 billion of the previous working day, according to the central bank statistics. "The central bank has remitted the fund to the ACU headquarters in Tehran in line with the existing provision of the nine-member union," a senior official of the Bangladesh Bank (BB) told BBN in Dhaka.
Trade deficit widens by 105pc in seven months
The country's overall trade deficit widened by more than 105 per cent in the first seven months of the current fiscal (FY) 2014-15 due to higher import payments than export receipts, officials said. The deficit rose to $5.72 billion during the July-January period of FY '15 from $2.79 billion in the same period of the previous fiscal, according to the central bank statistics, released on Thursday.
Defaulted industrial loans skyrocket by 58pc in H1 of FY15
The defaulted loans in the industrial sector skyrocketed by 57.70 per cent in the first half of the current financial year 2014-15 compared with the corresponding period of the FY14 due to a dull business amid political unrest and uncertainty. According to Bangladesh Bank data released on Thursday, the defaulted industrial loans stood at Tk 17,810.75 crore in July-December of the FY15 against Tk 11,293.34 crore in the same period of the FY14. A BB official told New Age on Thursday that the industrial sector had faced a major setback in the recent period due to the ongoing political crisis which fuelled the defaulted loans in the sector.
US pledges to help achieve $50b apparel export target
The US will assist Bangladesh in achieving its $50 billion apparel export target by the end of 2021, US Ambassador in Bangladesh Marcia Stephens Bloom Bernicat said yesterday. With higher prospects, the Bangladesh government and garment exporters set a target to export apparel items worth $50 billion in the next seven years, at the first Dhaka Apparel Summit held in December last year. Bangladesh that accounts for 5 percent of the $450 billion global garment trade will need at least 15 percent year-on-year growth in exports to reach the target.
BB governor terms as poor man’s economist
The central bank governor of Bangladesh Dr. Atiur Rahman has been lauded for his contribution towards promoting socially and environmentally responsible financing in Bangladesh without compromising macroeconomic stability. The perception of bankers has been severely tarnished as a result of the financial crisis. To many the word ‘banker’ could conjure up an image of a Gordon Gekko-like figure, preaching the ‘Greed-is-Good’ philosophy from the 50th floor of a towering office building in Wall Street or Canary Wharf.
Accord, Alliance shy away from remediation commitment
The disbursement of remediation money for garment factories flagged by Accord and Alliance remains very low, as retailers shy away from contributing to the pooled fund, industry insiders said. Both the garment makers and retailers will be benefitted if the funds are released soon, as the remediation work is going on in full swing at the factories, said Atiqul Islam, president of Bangladesh Garment Manufacturers and Exporters Association. “We have established transparency in our supply chain and now the time has come for both the Accord and Alliance to prove theirs. They should uphold their commitment.”
Bangladesh’s stocks down for 5th day
Bangladesh’s stocks extended their losing streak for the fifth running sessions Thursday with sluggish activities as investors’ confidence remained shaky amid no improvement in the political front. The market opened with a negative note which sustained throughout the session amid modest see-saw. DSEX, the prime index of the Dhaka Stock Exchange (DSE) went down further by 16.62 points or 0.35 percent to close at 4,664.91 points.
BBN/SSR/AD-06Mar15-10:05 am (BST)