Wednesday’s morning business round up of Bangladesh

Last updated: March 4, 2015

Dhaka, Bangladesh (BBN)- The BBN has prepared the morning business round up compiling reports, published by different newspapers and news portals in Bangladesh.

BB warns NBFIs against giving loans to directors
The central bank warned the top executives of non-banking financial institutions (NBFIs) on Tuesday against sanctioning loans in favour of their directors, defying the existing rules and regulations. Bangladesh Bank (BB) Governor Atiur Rahman issued the warning in a meeting with the chief executive officers (CEOs) and managing directors (MDs) of NBFIs in the central bank headquarters. The CEOs and MDs of NBFIs have been asked for taking effective measures to prevent such type of irregularities, officials said.

Frozen food exporters in a tight corner
A sharp fall in the value of the euro and the Russian ruble against the dollar, coupled with the ongoing political unrest at home, has hit the frozen food industry hard. Exporters said prices of black tiger shrimp, the major frozen food item that goes to the European markets, have now slumped 42 percent to $5.25 a pound (16-20 pieces) from August last year. "We are forced to sell at lower prices to retain our international buyers. Exports to Russia have dipped to almost zero, while the demand for shrimp also fell in Europe because of an economic slowdown there," said SM Amzad Hossain, president of Bangladesh Frozen Foods Exporters Association.

Govt to procure 11 lakh tonnes of boro at Tk 32 a kg

The government on Tuesday decided to procure 10 lakh tonnes of husked boro rice and one lakh tonnes of un-husked rice from local market starting from May 1. The boro rice procurement will continue till August 31, food minister Qumrul Islam told reporters after a meeting with the national food committee at the secretariat. He said the government also fixed the procurement price of per kilogram boro husked rice at Tk 32 and un-husked rice at Tk 22 for the current season.

DSEX dips below 4,700-mark

Bangladesh’s stocks closed lower for the third running sessions Tuesday with key index of the major burse dipping below 4,700-mark after one month as prolonged political turmoil weighed on investors’ sentiment. DSEX, the prime index of the Dhaka Stock Exchange (DSE), came down below the 4,700-mark and closed at 4,695.79 points, shedding 23.60 points or 0.50 percent. The two other indices also ended in red.

Strategy for energy swap with Myanmar under study
The government is set to sort out a strategy for the upcoming bilateral talks to quicken the implementation of the planned energy swap by importing natural gas from Myanmar for electricity generation. A senior official concerned said the Energy and Mineral Resources Division (EMRD) under the ministry of power, energy and mineral resources (MoPEMR) will try to quantify gas to be imported from Myanmar and electricity to be exported to that country.
Both the sides will also discuss the possible routes for the energy swap, first of its kind in South Asia, he added.

ADP outlay may be cut by 10pc

The government may slash the allocation for its annual development programme by 10.35 percent to Tk 72,000 crore in the current fiscal year due to slow implementation of projects. Planning Minister AHM Mustafa Kamal will place the proposal of brining down the outlay at a meeting of the National Economic Council on March 10. The government's contribution to the ADP might be squeezed by 10.48 percent to Tk 47,100 crore, while foreign assistance would be cut by 10.10 percent to Tk 24,900 crore.

Govt earnings from DSE drops 8pc in Feb
The government’s revenue earnings from the Dhaka Stock Exchange (DSE) fell further by 8.0 percent in February compared to January this year. The revenue falls as the trading volume was on the decline mood due to ongoing political unrest. The government bagged tax worth BDT 86.97 million in February against BDT 94.52 million in January, 2015, registering a decline of 8.0 percent over the month,  according to statistics from the DSE.

BBN/SSR/AD-04Mar15-11:14 am (BST)

 

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