Dhaka, Bangladesh (BBN) - The Bangladesh Business News (BBN) prepares the morning business round up compiling reports, published by different newspapers and news portals in Bangladesh.
WTO predicts global trade to expedite next year: The World Trade Organization (WTO) has predicted that the global trade will grow by a modest 4.7 percent in 2014 and at a slightly faster rate of 5.3 percent in 2015.Although the 2014 forecast of 4.7 percent is more than double the 2.1 percent increase of last year, it remains below the 20-year average of 5.3 percent. For the past two years, growth has averaged only 2.2 percent, according to a WTO annual report, released on Monday.
Credit growth dips: Credit growth in private sector dropped to a record low of 10.73 percent in February, and continues to slide, according to Bangladesh Bank data. Previously, the lowest growth rate was recorded at 10.75 percent in fiscal 1999-2000. Credit growth in the first eight months till February is almost 6 percentage points lower than the central bank-set target of 16.5 percent for the current fiscal year. There is enough liquidity in the money market to help a post-election rebound in the private sector, according to economists, bankers and businesses. But borrowers seem hesitant to take the money at an interest rate of 14 to 15 percent, they say.
Two non-life insurance products in the offing: The insurance regulator is likely to announce two new non-life products in a bid to diversify the product basket. This time one product has been designed for working women and another one is aimed at providing extensive coverage in the cases of deadly diseases including cancer. The Central Rating Committee (CRC), an organ of the Insurance Development and Regulatory Authority (IDRA), will finalise the two products in its April 15 meeting. The Green Delta Insurance Company and the Prime Insurance have proposed the two new products to the CRC for its approval.
BB asks 21 banks to explain failure to settle bills in time: Bangladesh Bank has issued show-cause notices to 21 scheduled banks to explain why they failed to settle their foreign bills in due time against letters of credit in line with the central bank’s directives. A BB official told New Age on Thursday that the central bank had served the notices on the banks on April 7, asking them to reply to the notices by April 17, 2014. The BB earlier issued a circular saying that it would impose financial penalty against the banks which would fail to make payments to foreign parties against LCs in time, he said.
Bangladesh’s apparel exporters to get more cash incentive: The government has set to provide more cash incentive to the ready-made garment (RMG) exporters to minimise their losses caused by the political unrest last year, officials said. The ministry of finance will provide more cash incentive at the rate of 0.25 percent on the freight on board value of export of all types of RMG items through commercial banks, an official told BBN in Dhaka.He also said the ministry has already sent a letter to the central bank with advising for taking necessary measures in this connecting.
Govt fails to comply with HC order: The government has failed to follow a High Court (HC) order to set up an authority to enforce the national building code. The HC in its 2010 judgement asked the government to establish an authority to enforce the building code within a year. Almost three years have already gone by since the HC passed the order but the government is yet to carry out the order. A contempt of court rule was also issued against the government for not establishing the authority.
BSEC asks DSE to explain as trading halts: The securities regulator asked the Dhaka Stock Exchange (DSE) to come up with an explanation on the disruption of trading at the premier bourse of the country Sunday, officials said. Trading at the DSE had remained suspended for 2 hours and 40 minutes from 10.35 am on the day due to what the DSE called technical glitches. The Bangladesh Securities and Exchange Commission (BSEC) asked the DSE to immediately submit a detailed report on the suspension of trading.
Bangladesh Bank governor says inclusive financing generating inclusive growth: Bangladesh Bank (BB) Governor Atiur Rahman has emphasized inclusive financing for achieving inclusive economic growth. “In Bangladesh experience, we have found inclusive financing a good instrument of promoting both output stability and financial stability,” the central bank chief said speaking at an IMF seminar held in Jack Morton Auditorium of George Washington University, Washington, DC on April 13. Dr. Rahman aso said inclusive financing does this by diversifying asset portfolios and deposit bases of financing institutions amongst myriad small new inclusion clients, reducing credit and liquidity risks and generating inclusive growth.
Bangladesh govt borrows BDT 14.50bn issuing T-bills: Bangladesh government borrowed BDT 14.50 billion through issuing treasury bills (T-bills) on Sunday, officials said. Total 25 bids of BDT 16.1078 billion for 91-Day T-bills and 34 bids of BDT 9.2125 billion for 182-Day T-bills were offered. Of those, five bids of BDT 7.50 billion for 91-Day T-bills and 27 bids of BDT 7.00 billion for 182-Day T-bills were accepted.
Govt again fails to meet GSP conditions: The country has once again failed to fulfil the required conditions for reinstatement of GSP status to the US markets within the deadline of April 15, mainly due to bureaucratic tangles. The commerce ministry is now set to submit a report which does not contain any account of substantial progress with respect to the 16-point action plan provided by the US for regaining the generalised system of preferences.
BBN/SSR/AD-15Apr14-8:02 am (BST)