Dhaka, Bangladesh (BBN) – The BBN has prepared the morning business round up compiling reports, published by different newspapers and news portals in Bangladesh.
BB mounts watch on offshore banking
The central bank has expedited monitoring and supervision on offshore banking units (OBUs) of the commercial banks for limiting risks in free trans-boundary transactions, officials said Wednesday. As part of the move, the Bangladesh Bank (BB) is now collecting information on assets and liabilities of each OBU on weekly basis for assessing their financial risks, if any, especially with transactions in terms of foreign currencies. Besides, the central bank has started preparation to bring the functions of OBUs under regular monitoring by amending the existing provisions on operation and establishment of the OBUs operations in Bangladesh.
Export fund raised to $2b
In the face of rising demand from exporters, the central bank yesterday increased the size of its export development fund by 33 percent to $2 billion. The size of the fund was last raised in June last year — to $1.5 billion. Exporters get foreign currency loans from the fund at almost one-third the rates commercial banks charge. Kazi Sayedur Rahman, general manager of Bangladesh Bank’s foreign exchange reserve and treasury management department, said a hike in demand and adequate reserves of foreign currency have prompted them to increase the size of the fund.
PPP projects linger at approval stage
PPP projects in the country have remained stuck at the ‘approval’ stage, with all of the 35 approved projects, involving $11.13 billion, at present having little to show in terms of implementation. A list of 34 approved projects (35 since last month), to be implemented under the public private partnership scheme, was included in the budget speech of finance minister AM A Muhith last year. ‘In order to attract private investment for infrastructure development, we will encourage implementation of project through Public Private Partnership (PPP),’ Muhith said in his budget speech. ‘In the meantime as many as 34 projects under six sectors have been approved on principle and advisors/consultants have been engaged for 33 projects. In fact, this is the first step towards project implementation.’
EU envoy urges Bangladesh to prepare for GSP+
European Union ambassador Pierre Mayaudon said Bangladesh would have to meet four conditions to get GSP+ trade facilities after graduation to the middle income country status. The conditions include ensuring human and labour rights and maintaining environmental and good governance principles. Pierre Mayaudon was speaking at a seminar styled as “Bangladesh-EU Trade Ties: Prospects and Challenges” in Dhaka yesterday. The Economic Reporters Forum (ERF) organised the event at the National Press Club. The per capita income of Bangladesh is now $1,314, according the latest official data.
WB to give low-cost funds to private firms
The World Bank is set to extend long-term low-cost loans to private sector firms, including those from garments, footwear and light engineering sectors, in a bid to brighten the country’s stagnant investment scenario. A $300 million fund is likely to be provided to Bangladesh, the approval for which is due from the multilateral lender’s board in the first week of June. The rate of interest on the loan would be LIBOR plus 3-4 percent and the credit would be given for five years.
Govt, not BB, can make decision on deadline extension: BB
Bangladesh Bank on Wednesday said it was up to the government to decide on any extension of the 2016 deadline for reducing the commercial banks’ stock market exposure. Following a request from the Bangladesh Securities and Exchange Commission for extending the deadline, the BB said that the time limit was set in the amended bank company act. ‘The central bank has nothing to do in this regard. It is up to the government to decide whether the act would be amended again for extending the deadline,’ BB deputy governor SK Sur Chowdhury told reporters after a coordination meeting among the financial market regulators at the central bank headquarters in the capital. As per the Bank Company (amendment) Act 2013, banks will have to cut down their capital market investment to 25 per cent of their total of four components of core capital in the share market.
Modi keeps pack schedule for Bangladesh visit
It will be a 36 hours visit with a difference. No travel outside of the capital city and no glitzy Diaspora function. But Narendra Modi’s visit to Dhaka will be power packed, reports the IndiaToday. Bangladesh is all set to receive the Indian Prime Minister from June 6-7 this year.
With his focus on neighbourhood policy, Modi will travel to the country that India aided during its Liberation War, after having visited 19 countries in the last one year. Modi’s itinerary so far has included Bhutan, Nepal, Srilanka in the immediate neighbourhood.
Bangladesh approves KDS Accessories IPO
The Bangladesh securities regulator on Wednesday approved the IPO (initial public offering) proposal of KDS Accessories Limited to raise a fund worth BDT 240 million from public, officials said. The approval came at a commission meeting, chaired by Bangladesh Securities and Exchange Commission (BSEC) Chairman Professor M Khairul Hossain at the BSEC office, said a statement issued by BSEC spokesperson and executive director, Md Saifur Rahman.