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.
BB plans uniform method to calculate cost of funds
The central bank is set to come up with a new formula for calculating the cost of funds for banks with a view to bringing down the interest rate on lending, much to the trepidation of bankers. The cost of funds is the interest rate paid by lenders for the funds they use in their business.
Additional cash incentive for RMG needs Tk200cr more
Additional one per cent cash incentive announced for the export oriented apparel industry would require the government to spend another sum of Tk200 crore. Officials of the monitoring cell under finance ministry said that Tk 2,800 crore earmarked for the burgeoning RMG sector in the budget would be insufficient to provide the additional incentive awarded to the sector under ‘pressure’.
Govt considers LNG buy from spot mkt
State-run Rupantarita Prakritik Gas Company Ltd has initiated master sales agreements (MSAs) with 17 global suppliers separately to source liquefied natural gas (LNG) from spot market. Final deals will be signed soon following the approval from the cabinet committee on economic affairs, a senior company official told the FE.
BB mulls approving merger, bond issuance proposals
The Bangladesh Bank (BB) is thinking to approve proposals for issuance of bonds by ailing non-bank financial institutions (NBFIs) as a long-term measure for recovery from the ongoing liquidity shortfall, highly placed sources have said. “Issuance of bond by the NBFIs is a long-term plan to address liquidity crisis. NBFIs were advised to submit proposal. We will give approval to ‘bond issuance proposals’ within the shortest possible time,” said a top official of the central bank wishing not to be named.
BFIU takes measures to curb trade-based money laundering
Bangladesh has taken a coordinated effort to curb trade-based money laundering for mitigating the risks of frauds and forgeries in the banking sector. Under the move, the Bangladesh Financial Intelligence Unit (BFIU) has already formed a nine-member expert committee to detect such type of money laundering.
Govt’s borrowing from banks almost half of its plan
The government’s bank borrowing last fiscal year was almost half of what it had planned to, thanks to its lower development expenditure and higher sales of national savings certificates, much to the relief of the cash-strapped banking sector. In fiscal 2018-19, Tk 17,179 crore was borrowed from the banking sector although the target set at the beginning of the year was Tk 30,895 crore, according to data from the Bangladesh Bank.
India eyes duty-free access of Tripura tea to Bangladesh
India wants duty-free access of tea from its northeastern state of Tripura to Bangladesh. Indian foreign affairs minister Subrahmanyam Jaishanker may raise the issue, among others, during his upcoming visit to Bangladesh scheduled for August 20 and 21.
Merchants halt rawhide sale on pay row
Bangladesh Hide and Skin Merchants Association (BHSMA) on Saturday decided to put on hold sales of rawhide to the tanners until their arrears are paid. The decision came in the wake of the recent rawhide market debacle.