MFIs seek Tk 225b refinance fund

The country’s microfinance institutions, or MFIs, have sought Tk 225 billion refinancing fund as stimulus package to overcome the economic losses from the coronavirus pandemic. Credit and Development Forum, or CDF, a national grouping of the MFIs, has sent letters to government high-ups, including Prime Minister’s Office, Bangladesh Bank governor, Microcredit Regulatory Authority, the Finance Ministry, and the NGO Affairs Bureau, pleading for the rescue package. The agencies sought the fund for a period of five years and at 9.0 per cent rate of interest, of which the small lenders would pay 4.5 per cent and the central bank would pay the rest on behalf of the government, according to the letter obtained by the FE. In April 20, the Bangladesh Bank unveiled a financial package of Tk 30 billion for underprivileged farmers, professionals and micro enterprises to help them offset the negative impact of the virus. Marginal businesses and farmers with no access to banks and non-bank financial institutions will be allowed to get the loans from the revolving fund at 9.0 per cent interest rate. The MFIs) with certificates from the Microcredit Regulatory Authority can give out the loans. Under the package, the BB will initially provide the fund to banks at 1.0 per cent interest, which they will lend to the MFIs at 3.5 per cent interest. The MFIs will be allowed to charge a maximum of 9.0 per cent interest on borrowers.

Source: https://today.thefinancialexpress.com.bd/trade-market/mfis-seek-tk-225b-refinance-fund-1587826744

Nagad gives Tk 0.5 million to virus-hit employees

Bangladesh Post Office’s mobile financial service, Nagad, has decided to stand beside its around 0.2 million (2.0 lakh) employees amid the coronavirus (COVID-19) pandemic. Nagad will provide up to Tk 0.5 million (5.0 lakh) each for treatment if any of its entrepreneurs, distributors and salespersons become coronavirus positive. As the country is going through an unwanted situation rendered by the deadly COVID-19 pandemic, Nagad thinks it is the best moment to extend humanitarian assistance to the people. It said Nagad has taken up the initiative to stand by the employees and their family members to acknowledge and appreciate their efforts. Nagad is pledge-bound to work for the country and its people till the end. It said with a view to helping people and the country as a whole, Nagad has cut down merchant to merchant transaction fees to Tk 6.

Source: https://today.thefinancialexpress.com.bd/trade-market/nagad-gives-tk-05-million-to-virus-hit-employees-1587826767

Biman starts first flight to Guangzhou in May

National flag carrier Biman Bangladesh Airlines has finally got approval to operate flights to Guangzhou of China. Managing Director of Biman Bangladesh Airlines Mokabbir Hossain confirmed this to the FE. Biman has a plan to start operation from May this year. Mokabbir said that Biman is planning to provide cargo services to any organisation if they need to charter any aircraft. Talking to the FE, Mr Hossain said that Biman got the approval from Civil Aviation Administration of China in the end of March to operate Guangzhou flight. Biman will operate weekly one flight with Boeing 737-800. This will mainly carry cargo, he mentioned. Biman MD claimed that none of its 5,200 employees was infected during the COVID-19 pandemic as they followed the guidelines of ICAO (International Civil Aviation Organization) and WHO (World Health Organization). Biman has 150 cockpit crew and 500 cabin crew who are perfectly alright. But people made hue and cry over their continuing flight operations to London and Manchester. When asked, aviation expert Kazi Wahidul Alam said that it will not be commercially viable for Biman to operate weekly one flight to Guangzhou. Besides, Chinese government now allows only Chinese nationals to China. But cargo operation by Biman will be viable as the price for per kg cargo has risen significantly from US$ 2-2.5 to US$ 6-7.

Source: https://today.thefinancialexpress.com.bd/trade-market/biman-starts-first-flight-to-guangzhou-in-may-1587826855