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.
Private investment flatters to deceive
Private investment continues to remain obstinately stuck in the slow lane, putting a damper on the country’s growth aspirations. In fiscal 2016-17, private investment to gross domestic product ratio is expected to be 23.01 percent — only 0.02 percentage points higher than the previous year, according to provisional data from the Bangladesh Bureau of Statistics.
Govt still wants cheap WB funds as budget support
The government is seeking to borrow $500m under the World Bank’s Development Policy Credit (DPC) programme in the next fiscal year, Finance Division sources said. The Economic Relations Division started negotiating with World Bank for the loan when this government came to power in 2009. But the global lender has not approved the loan, citing the government’s failure to carry out prescribed reform.
IBBL vice-chair, 6 directors threaten to `resign’
Seven directors including the vice-chairman of the embattled board of directors of Islami Bank Bangladesh Limited on Saturday warned that many of the directors of the bank would `resign willingly’ if any of them was forced to resign. IBBL vice-chairman Syed Ahsanul Alam, who has been in conflict with chairman Aarastoo Khan for the last few days, on Saturday sent to the media a press release making the warning with signatures of seven directors including him of the 20-member board.
S&P sees again stable outlook for Bangladesh
Top global rating agency Standard & Poor’s (S&P) has affirmed its ‘BB-‘long-term and ‘B’ short-term sovereign credit ratings on Bangladesh with a stable outlook for the consecutive eight year. The stable outlook balances the country’s healthy growth prospects and an improving external profile against fiscal weaknesses and development needs, according to the S&P research update, released on Friday.
Bangladesh’s stocks plunge as bank shares fall further
Bangladesh’s stocks witnessed yet another bearish week that ended on Thursday, extending the losing streak for the two weeks in a row as risk-averse investors continued their selling binge. Brokers said the worried investors were busy to cash in on stocks to safeguard their position throughout the week while sale pressure from the issues from banks, non-bank financial institutions, and cement, power and telecom sectors dragged down indices.
Petrobangla blocks $50m Chevron gas bill
The state-run Petrobangla moves to block US$50 million from Chevron Bangladesh’s billings to pay workers’ benefit though the trade union seeks higher incentives, said officials. “We have blocked US$48 million from Chevron Bangladesh’s bill against gas sales of April, which is equivalent to around 97.96% of the month’s total gas bill,” Petrobangla Director for finance Md Towhid Hasanat Khan told the FE.
Banks irked by interest rate cap on credit cards
Bangladesh Bank’s decision to cap the interest rate on credit card came as a shock for the banking industry, especially those with a good exposure to this segment. Earlier on May 11, the central bank issued a guideline on credit card operations and for the first time, set a limit on the interest rate on credit cards. Banks can charge the highest interest rate of consumer loans plus 5 percent, meaning that the interest rate on credit cards would come down to 16-17 percent — half the existing rate.
IFAD Autos to buy equity stake of Gulf Oil Bangladesh
IFAD Autos Limited, a leading assembler and seller of vehicles, has recently signed an agreement with Gulf Oil Bangladesh Limited (GOBL) on buying 49% of its equity stakes at a cost of USD1.685 million. The company made the announcement by a price sensitive information (PSI) statement on Thursday after the end of trading hours.