Thursday’s morning business round up of Bangladesh

Last updated: April 26, 2018

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

Foreign loans getting costlier: BIBM
Increasing LIBOR rate and the appreciation of the greenback against the taka are putting pressure on Bangladeshi businesses that borrowed from foreign sources to meet their needs, according to a report of the Bangladesh Institute of Bank Management. If these pressures cause the exchange rate to depreciate further the private sector debt will become costlier to service, said the report that will be unveiled today.

FDI flow drops by 7.7pc last year
Net inflow of foreign direct investment in the country declined by 7.72 per cent last year, with officials attributing the drop-off to geo-political tension, the central bank has said. Statistics available with Bangladesh Bank showed that net inflow of FDI stood at US$ 2.15 billion in 2017, down from $ 2.33 billion a year ago.

NBR reduces VAT on bulk LPG trading
The National Board of Revenue has set tariff value for liquefied petroleum gas for imposing value-added tax on the product at the trading stage. The VAT wing of the revenue board on April 9 set the tariff value at Tk 3 per kilogram of LP gas reducing the VAT incidence to 0.45 per cent from current 4 per cent advance trade VAT.

Yield on 07-Day BB bills dips below 1.0%
The weighted average yield on 07-Day Bangladesh Bank (BB) Bills fell to below 1.0 per cent while no bids for 14-Day BB bills were received on Wednesday, officials said. The yield on 07-Day BB Bills came down to 0.85 per cent on the day from 1.32 per cent of the previous day, according to the central bank’s latest statistics.

Automotive battery market revving up
The automotive battery market size hit Tk 8,000 crore last year on the back of runaway popularity of easy bikes and battery-run rickshaws. Five years ago, the market size was about Tk 2,500-3,000 crore, according to industry players.

Ministry sticks to demand for addl fund
Road Transport and Bridges Ministry is sticking to its demand for an additional allocation of Tk 14 billion to acquire more land for the Padma Bridge project despite reservation expressed by a government project monitoring body, officials said Wednesday.

What are the Chinese offering DSE as strategic partner?
A board meeting of the Dhaka Stock Exchange (DSE) planned for next week will ask shareholders to approve a new strategic partnership with a Chinese consortium comprising the Shenzhen Stock Exchange (SZSE) and Shanghai Stock Exchange (SSE).

BSEC finalising acquisition rules, merger not included
The Bangladesh Securities and Exchange Commission is finalising only the acquisition rules on disclosure basis, putting on hold the merger rules. After a couple of years of assessing the rules, the regulator has now decided to amend existing rules only to settle share acquisitions.

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