Bangladesh signs $200m loan deal with ADB to strengthen microfinance

The government of Bangladesh and the Asian Development Bank (ADB) on Tuesday signed an agreement for $200 million in loans to strengthen microfinance in Bangladesh.The deal would also support microenterprises, particularly those owned by women and those located in regions with high climate risks.Economic Relations Division (ERD) Secretary Sharifa Khan and ADB’s Country Director EdimonGinting signed the agreement on behalf of their respective sides, according to BSS.The Microenterprise Financing and Credit Enhancement Project will increase the liquidity of microfinance institutions (MFIs), which are key lenders to microenterprises, by channeling funds through Palli Karma Sahayak Foundation (PKSF), said an ADB press release.PKSF is a state-owned microfinance and development organization that on lends to partner MFIs

Source: https://thefinancialexpress.com.bd/economy/bangladesh-signs-200m-loan-deal-with-adb-to-strengthen-microfinance-1670324453

Monetary policy to be formulated twice a year: BB

Bangladesh Bank (BB) has again decided to formulate monetary policy twice a year as per the advice of the International Monetary Fund (IMF).The central bank in a meeting with economists yesterday took the decision. As part of this, the monetary policy will start formulation for the second half of the current fiscal year in January next year, Bangladesh Bank’s Chief Economist Habibur Rahman told UNB today. “We have discussed various aspects of macroeconomics, including money supply, reserve currency, and interest rates, with all stakeholders, including economists of the country. The current challenges of the economy were also discussed,” he added.As per the suggestion of the economists the central bank decided to formulate the monetary policy twice a year, he said.Monetary policy was announced twice a year since 2006. In 2019, former governor Fazle Kabir announced monetary policy formulation once a year.Accordingly, he announced the monetary policy for the fiscal year 2019-20 on July 31 of that year. The central bank announced monetary policy only once in the next financial year 2020-21 and 2021-22.IMF recently recommended announcing monetary policy four times a year as a condition of getting a $4.5 billion loan.

Source: https://www.thedailystar.net/business/economy/news/monetary-policy-be-formulated-twice-year-bb-3189206

Leather maintains healthy export growth despite global crisis

Despite the raging global economic crisis, Bangladesh’s leather and leather products sector witnessed a 17.56 per cent year-on-year growth in export earnings in the first five months of the current fiscal year on the back of orders shifting away from competitors.In July-November, exporters earned $537.50 million from the shipment of leather and leather products. It was $456.85 million during the corresponding period in the previous financial year, data from the Export Promotion Bureau (EPB) showed.The leather footwear segment fetched $328.19 million during the five-month period, up 17.55 per cent year-on-year, while leather products brought home $153.74 million, an increase of 26.89 per cent.Leather shipment was, however, down 1.61 per cent at $55.57 million.The sector suffered severely in 2020 and partly in 2021 as orders slumped for the coronavirus pandemic. But it did not take much to make a comeback.

Source: https://www.thedailystar.net/business/economy/news/leather-maintains-healthy-export-growth-despite-global-crisis-3189411