IMF sets 33 conditions for next two loan instalments

Bangladesh will have to comply with 33 new conditions by June next year in order to receive the next two instalments under the International Monetary Fund’s $4.7 billion loan programme. It came as the lender approved the third tranche of $1.15 billion yesterday in a boost to Bangladesh’s foreign exchange reserves. The fresh conditions are aimed at helping Bangladesh overcome four persisting challenges: depleting foreign currency reserves, rising inflation rate, lower revenue earnings, and a lack of governance in the banking sector. IMF’s loan programme contains two types of conditions: seven are linked to performance criteria and the rest are related to structural benchmarks. Of the seven, the country will have to increase its net international reserve (NIR) to $19.47 billion by next June. The revised target was $14.78 billion for June this year. The primary budget deficit will have to be brought down to Tk 128,300 crore from the Tk 138,360 crore set for 2023-24, which ends on June 30. So, the government will have to tighten its belts in 2024-25.

Source: https://www.thedailystar.net/business/news/imf-sets-33-conditions-next-two-loan-instalments-3641676

Bangladesh Bank issues new rules on home loan repayment

The Bangladesh Bank has issued new directives on the repayments of industrial term and home construction loans in line with the new market-based method of calculating the interest of bank loans. The central bank scrapped the previous formula, which was based on the Six-month Moving Average Rate of Treasury bills, abbreviated as SMART, on May 8 this year in order to make interest rates fully market-based. The adverse global economic situation and the new method of calculating interest on bank loans have caused the interest rate to surpass the fixed rate that was in effect before July 1, 2023. The central bank’s instructions regarding the collection of instalments of loans disbursed before July 1, 2023, include extending the period required for collection of instalments so that recovered loans do not become part of debt restructuring.

Source: https://www.thedailystar.net/business/news/bb-issues-new-rules-home-loan-repayment-3641646

External debt decreases

Bangladesh’s foreign debt decreased by $1.34 billion in the first three months of this year. The county’s total public and private sector debt stood at $99.30 billion as of March. The external debt crossed $100 billion for the first time in December last year. At the end of March this year, the private sector’s total debt stood at $20.29 billion, three percent lower than $20.94 billion in December last year. Meanwhile, the government’s foreign debt stood at $79 billion, down from $79.69 billion at the end of 2023. In March, the private sector’s short-term foreign debt reached $11.04 billion, a decrease of $750 million from $11.79 billion in December. Meanwhile, the private sector’s long-term external debt decreased to $91.53 billion in March from $92.56 billion in December.

Source: https://www.thedailystar.net/business/news/external-debt-dips-3641656

Chinese company Alpen Banyan comes with highest ever investment proposal for Bepza EZ

Chinese company Alpen Banyan Garments BD Company Ltd will invest $108.99 million to set up a woven and knit garments factory inside Bepza Economic Zone. It will be the highest ever investment proposal coming from a single company for establishing industries inside the zone. The factory will be established on 90,000 square metres of land and it targets to annually produce 43 million pieces of woven and knit garments. The company will create employment opportunities for 11,995 Bangladeshi nationals. Investors from home and abroad gave positive responses for the Bepza EZ, the largest venture of Bepza located at Mirsharai in Chattogram. Some 29 companies have so far signed agreements to invest $688 million in the economic zone.

Source: https://www.thedailystar.net/business/news/chinese-company-alpen-banyan-comes-highest-ever-investment-proposal-bepza-ez-3641276

Mr. Romo Rouf Chowdhury re-elected chairman of Bank Asia

Mr. Romo Rouf Chowdhury has been re-elected as chairman of Bank Asia at the Board of Directors’ meeting held on June 23, 2024. Mr. Chowdhury is one of the sponsor shareholders as well as sponsor directors of Bank Asia. He is a graduate in engineering from Durham University, United Kingdom. He has more than 30 years of experience as an industrialist.

Source: https://today.thefinancialexpress.com.bd/stock-corporate/romo-rouf-chowdhury-re-elected-chairman-of-bank-asia-1719332716