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.
DEBT SERVICE: Hard term loans to multiply burdens
By opting to borrow increasingly from Russia, China and India on hard terms the government is headed to face serious debt repayment burden. The Economic Relations Division fears that the country’s sound repayment records could be jeopardized by the moves of at least six ministries to borrow $25.50 billion from Russia and China on high interests within this calendar year.
Local firms still can’t invest abroad
The central bank has not allowed any Bangladeshi national to invest fresh capital abroad, meaning the money reportedly deposited with foreign banks in various countries was siphoned off illegally. In Bangladesh, capital accounts are not convertible, but some foreign investment from the exporter retention quota is considered on a case-by-case basis, said Anwarul Islam, deputy spokesperson of the central bank.
FBCCI threatens to skip future talks with NBR
Country’s apex trade body expressed its dismay over the national budget preparation as most recommendations of the business community, particularly about taxation issues, went unheeded. President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Abdul Matlub Ahmad came up with such complaints Saturday in a formal reaction of the federative body of businesses over the budget for fiscal year (FY) 2016-17.
MD crisis hits financial sector hard
The bank and insurance sectors have long been facing crisis as there is a lack of managing directors in the market. On the other hand, the age limit on service set by the respective authorities add salt to the wounds. Due to age restriction, the seasoned managing directors for banks and insurances fail to contribute to their service sectors despite having capacity to work with dexterity.
Weekly Review: Bangladesh’s stocks close lower
Bangladesh’s stocks closed marginally lower, the first week after budget declaration, as proposed budget failed to spur stocks prices and investors were mostly in selling mood. The week witnessed five trading sessions as usual. Of them, three sessions closed lower, while two saw marginal gain.
ROOPPUR NPP: Dhaka, Moscow $11.385b credit deal in mid-July
Under an agreement to be signed by July 15, Russia would provide $11.385 billion as supplier’s credit to Bangladesh for the construction of the first ever nuclear power plant in the recipient county at Rooppur, Pabna, Bangladesh Atomic Energy Commission chairman M Ali Zulquarnain told New Age. He said that the two sides would work out a mutually convenient date and venue for signing the deal.
Bangladesh’s banks slash interest rate further in April
Overall interest-rate spread in the country’s banking sector almost remained unchanged in April as commercial banks slashed interests on deposits more than on lending. The weighted average spread between lending and deposit rates offered by the commercial banks rose to 4.87 per cent in April 2016 from 4.86 per cent in the previous month, according to the central bank’s latest statistics.
Income tax looms for farmers
Farmers may soon have to pay taxes for their income from agriculture, Finance Minister AMA Muhith said yesterday. At present, a person whose only source of livelihood is agriculture stands to get tax exemption on incomes of up to Tk 4.5 lakh a year, according to the income tax law. “Farmers’ incomes are rising. Incomes from agriculture should not be fully exempted from tax,” he said at a discussion on the budget for fiscal 2016-17.