BB makes banks’ dividend payments conditional

The central bank on Monday suspended the payment of cash dividends by the banks until September 30 this year, officials say. Even the banks, which have already declared their dividends for 2019, will have to revise it if it clashes with the new step. The banks, according to the Bangladesh bank (BB) directive, are allowed to declare 30 per cent dividends, including a maximum of 15 per cent cash dividend, for 2019 if the banks are able to maintain 12.5 per cent capital-to-risk weighted-asset ratio, or CRAR. In contrast, banks that will maintain CRAR with buffer at lower than 12.50 per cent, may declare 15 per cent dividend including a maximum of 7.5 per cent cash. Banks, which have already availed regulatory forbearance, are allowed to announce 10 per cent dividend including 5.0 per cent cash only if their capital stands at 11.25 per cent or more after the adjustment of the regulatory forbearance from the central bank. However, banks, which can maintain CRAR with buffer at lower than 10 per cent, will be allowed to announce 5.0 per cent stock dividend with permission from the central bank. In the region, the Reserve Bank of India (RBI) has recently barred banks from paying dividends for the fiscal year ending in March 2020 so that they conserve capital in these testing times.

Source: https://today.thefinancialexpress.com.bd/first-page/bb-makes-banks-dividend-payments-conditional-1589219180

Govt, ADB sign $500m loan deal

The Asian Development Bank (ADB) and the government of Bangladesh signed a loan agreement involving US$500 million, aiming to help Bangladesh’s efforts to mitigate socio-economic impact of the prevailing COVID-19 pandemic. The Economic Relations Division (ERD) Secretary Fatima Yasmin and the ADB Country Director for Bangladesh Manmohan Parkash remotely signed the loan agreement on behalf of their respective sides, according to a press release of the Manila-based lender. The assistance package is expected to benefit over 15 million poor and vulnerable people in Bangladesh. At least 2.0 million poor families across the country will be given about $23 each, while about 1.0 million poor and vulnerable families will receive food support of 20 kilogrammes per month during the pandemic emergency period. Affected industries and sectors, and micro, small, and medium-sized enterprises will also be eligible for loans with subsidised interest, it mentioned. The loans are supported by a $1.0 million technical assistance grant to help the government improve its institutional capacity, introduce new tools for service delivery, develop a gender-responsive plan to improve the social safety net, and improve monitoring and evaluation capacity. CPRO was launched as part of the ADB’s $20-billion expanded assistance for developing its member countries’ response to the pandemic, and was announced on April 13.

Source: https://today.thefinancialexpress.com.bd/last-page/govt-adb-sign-500m-loan-deal-1589219691

MoF releases Tk 12.5b for cash support programme

The ministry of finance (MoF) released on Monday Tk 12.50 billion to provide cash support for five million poor families affected by the coronavirus pandemic. The beneficiaries will receive Tk 2,500 each to meet their needs, as they are facing dire financial hardships during the ongoing shutdown linked to the Covid-19 crisis. As low-income people are going through severe financial crisis having failed to earn a living during the shutdown, the Prime Minister announced last month that they would be provided with cash support. The money will be sent to the beneficiaries through mobile financial services such as bKash, Rocket, Nagad and SureCash.

Source: https://today.thefinancialexpress.com.bd/last-page/mof-releases-tk-125b-for-cash-support-programme-1589219962