Banks disburse Tk 185b in working capital loans
Deputy Governor of Bangladesh Bank (BB) Ahmed Jamal on Tuesday said the banks have so far disbursed Tk 185 billion in working capital loans from the stimulus package meant for large industries and the service sector.Mr. Jamal disclosed this at the eighth financial sector development meeting of the Business Initiatives Leading Development (BUILD), a public-private dialogue platform. The BB deputy governor spoke as a co-chair of the event held on an online platform. Dhaka Chamber of Commerce and Industry (DCCI) President Shams Mahmud was another co-chair at the programme. At the meeting, the BUILD proposed forming a ‘credit guarantee scheme’ (CGS) in the country to efficiently manage the credit guarantees. A credit guarantee scheme provides third-party credit risk mitigation to lenders through the absorption of a portion of the lender’s losses on the loans made to SMEs in case of default, typically in return for a fee.A number of nations have already introduced such entities to support small businesses in the wake of Covid-19 pandemic, the BUILD said. BUILD chairman AbulKasem Khan suggested forming a small committee under the supervision of the central bank to establish such an entity that will ensure effective disbursement of loans.
Abdullah Al Ahsan, new vice chairman of Dhaka Bank
Abdullah Al Ahsan has recently been elected as the vice chairman of Dhaka Bank. An industrialist, investor, educationist and philanthropist, Ahsan has over 35 years of experience in trade and commerce, the bank said in a statement yesterday. He has acquired an M Com and a master’s degree in business administration. A freedom fighter, Ahsan has been appointed as a special correspondent of Daily BanglarBani, published from Mujib Nagar by its founding Editor/Publisher Sheikh FazlulHuq Mani, founder of MujibBahini during the liberation war of Bangladesh.
Tax receipts from DSE drop 4.0pc in July
The government’s revenue earnings from the Dhaka Stock Exchange (DSE) fell nearly 4.0 per cent in the first month of the current fiscal year, after hitting 10 years low in the last fiscal. Market analysts said the sluggish trading activities due to Covid-19 pandemic coupled with low share sales by sponsor-directors impacted the government’s revenue earnings from the DSE in the first month of the Fiscal Year (FY) 2020-21. The government bagged revenue worth Tk188 million in July, 2020 which was Tk 195 million in July, 2019, according to data available with the DSE.The DSE, on behalf of the government, collects tax as TREC holders’ commission and share sales by sponsor-directors and placement holders at the rate of 0.05 per cent and 5.0 per cent respectively and deposits the amount to the government exchequer. Of the total earnings during the month, Tk128 million came from the TREC holders’ commission, popularly known as brokerage commission, while Tk60 million came from the share sales by sponsor-directors and placement holders, the DSE data shows. In July last fiscal year, Tk 105 million came from the TREC holders’ commission and Tk 90 million came from the share sales by sponsor-directors and placement holders.The DSE paid tax worth Tk 2.72 billion in FY 2011-12, Tk 1.27 billion in FY 2012-13, Tk 1.54 billion in FY 2013-14, Tk 1.74 billion in FY 2014-15, Tk 1.58 billion in FY 2015-16, Tk 2.46 billion in FY 2016-17, Tk 2.33 billion in FY 2017-18 and Tk 2.51 billion in FY 2018-2019 on TREC holders’ commission and share sales by sponsor-directors and placement holders. However, the government raked in Tk 4.47 billion in the FY 2010-11, the highest in its history, when the market witnessed a wild trend before crashing.
BD corporates urged to raise fund utilising ‘Bangla Bond’
The chairman of Chittagong Stock Exchange & former president, DCCI Asif Ibrahim on Wednesday invited UK companies to invest in the Bangladesh capital market. He also urged more Bangladeshi corporates to raise finance utilizing ‘Bangla Bond’ in the London Stock Exchange. He was addressing a webinar on “Exploring Trade & FDI Opportunities with the UK”, arranged by Dhaka Chamber of Commerce & Industry (DCCI) through zoom.The International Finance Corporation (IFC), the private sector financing wing of the World Bank Group, issued its inaugural bond in Bangladeshi taka, raising Tk800 million – equivalent to approximately $9.5 million.The IFC, with its AAA credit rating, offered investors a 6.3 percent interest rate annually for a three-year tenure, according to IFC. The IFC will use the bond proceeds to finance the Pran Group in order to boost their agro-processing capacities and expand the rural distribution reach. Based on such a need, the IFC intends to collect more money through extending the Bangla Bond up to $1.0 billion.
Beacon Pharma sets up dedicated antibiotic plant for Tk 250cr
Beacon Pharmaceuticals is set to inaugurate a new facility today to manufacture antibiotics exclusively — a venture that is likely to fetch the company Tk 100 crore in export receipts a year. The plant, which sits on 3 acres of land in Bhalukaupazila of Mymensingh district, cost Tk 250 crore and was set up in compliance to Good Manufacturing Practice Regulations promulgated by the US Food and Drug Administration.It will be dedicated to manufacturing cephalosporins, which are a large group of antibiotics that kill a wide range of bacteria in a similar way to penicillin. They bind to and block the activity of enzymes responsible for making an important component of the bacterial cell wall. Cephalosporins may be used to treat infections of the bone, ear, skin, upper respiratory tract and urinary tract. So far, five generations of cephalosporins have been developed. A total of 20 kinds of cephalosporins in injection, oral tablet, capsule and dry syrup forms will be produced by Beacon.Beacon followed the guidelines of the World Health Organisation in manufacturing these specific drugs involving 20 skilled pharmacists in ensuring quality. This facility created employment for 150 people and will help the sector expand in other ways. Health Minister Zahid Malik will inaugurate the plant through video conferencing.
ShahjalalIslami Bank signs MoU with PrimaDollar
ShahjalalIslami Bank Limited in collaboration with PrimaDollar will launch shortly a fintech-based factoring solution to the exporters where local exporters will be able to obtain their deferred receivables on a sight basis. This solution is secure, faster and will help to shorten the cash cycle of the exporters. PrimaDollar Operations Ltd, a global trade financier headquartered in the UK founded in 2015, which presently have 12 offices across the globe. ShahjalalIslami Bank Limited signed a Memorandum of Understanding (MoU) with UK-based trade finance provider PrimaDollar Operations Ltd on Tuesday at the bank’s corporate head office by maintaining proper hygiene and social distance.