Tk 500cr stimulus for pandemic-hit people who returned to villages
Bangladesh Bank has decided to roll out a stimulus package of Tk 500 crore to support people who migrated back to their villages due to the ongoing economic hardship. A good number of urban people who lost their jobs at the height of the coronavirus pandemic are now leading a difficult life without any employment in villages, according to a central bank paper. Lenders will get funds at 0.5 per cent interest rate, meaning that they will enjoy an interest margin of 5.5 per cent for disbursement of the loans. Borrowers who will avail Tk 1 lakh to Tk 2 lakh will be allowed to repay the loan by 18 months, which includes a grace period of three months. The repayment tenure will be two years, including a six-month grace period, if the amount of loan ranges between Tk 2 lakh and Tk 5 lakh. The tenure of the refinance scheme will end on October 30, 2024. The loan recovery, however, will continue afterwards. A study found that 27.3 per cent of the urban population temporarily migrated from cities, particularly Dhaka, on depleting savings for lockdown extensions and rising expenditures, mainly rent and utilities.
Govt to target 7.5pc GDP growth next year
The government plans to raise its economic growth target to 7.5 per cent for the next fiscal year, banking on the recovery of business activities and rising export earnings. The government aims to ensure a 7.2 per cent expansion of the gross domestic product (GDP) in the current fiscal year, ending in June 2022. Bangladesh’s exports surged in November as it raked in $4.04 billion, reflecting the strong demand for apparels from the country following the reopening of western economies. Exporters brought home a record $4.72 billion in October and $4.16 billion in September. November’s receipts were 31.25 per cent higher year-on-year. This week, the IMF projected that Bangladesh would have GDP growth of 6.6 per cent by the end of the current fiscal year. The IMF also said the country’s GDP growth for fiscal 2022-23 will be 7.1 per cent. Bangladesh has maintained record GDP growth of more than 7 per cent for more than a decade now and the rate was significantly high at 8.2 per cent just before the onset of the pandemic in 2020. Consumer Price Index rose 11 basis points to 5.7 per cent from September’s 5.59 per cent, and was up for the third consecutive month, according to the Bangladesh Bureau of Statistics.
UCB to issue Tk 1,000cr bond
United Commercial Bank (UCB) has decided to issue a subordinated bond worth Tk 1,000 crore for seven years in a bid to strengthen its capital base. This is the fifth subordinated bond of the bank, said UCB in a post on the website of the Dhaka Stock Exchange (DSE) yesterday. Subordinated debt is an unsecured loan or bond that ranks below other, more senior loans or securities with respect to claims on assets or earnings. In the case of borrower default, creditors who own subordinated debt will not be paid out until after senior bondholders are paid in full. The bond is unsecured, non-convertible, and redeemable.
$500m cheap loans from WB to improve power supply system
The World Bank yesterday announced that it would provide Bangladesh a concessional loan of $500 million to improve electricity services for about 40 million people in Dhaka and Mymensingh divisions. The programme includes a $15 million grant from the Clean Technology Fund, which provides new large-scale financial resources to invest in clean technology projects in developing countries. The credit will be used to upgrade and construct over 31,000 kilometres of distribution lines, 157 distribution substations and related infrastructure with new and advanced technologies. It will also incorporate measures to increase climate resilience of network infrastructure in 25 rural electricity cooperatives under the Bangladesh Rural Electrification Board (BREB).
BKB gets new managing director
Bangladesh Krishi Bank recently witnessed the appointment of a new managing director. The new managing director, Md Ismail Hossain, was serving Rajshahi Krishi Unnayan Bank as a managing director. Mr. Ismail started his banking career with Janata Bank Ltd as a senior officer in 1985. He completed his post-graduation degree in Public Administration from Chittagong University.
ONE bank gets new managing director
ONE Bank Ltd recently promoted Md Monzur Mofiz to the position of managing director (current charge). Monzur has been serving the bank as an additional managing director. He did a government job in the Ministry of Education as an engineer. He previously served Sonali Bank Ltd, AB Bank Ltd, City Bank Ltd and Dutch-Bangla Bank Ltd.
UCB gets new managing director
United Commercial Bank Ltd (UCB) recently promoted Arif Quadri to the position of managing director. Quadri was previously serving the bank as its deputy managing director. He began his banking career as a probationary officer in the then Arab Bangladesh Bank Ltd in 1984. The career banker previously served AB Bank Ltd, Al Baraka Bank Ltd, ONE Bank Ltd, Meghna Bank Ltd and Premier Bank Ltd during his 37-year-long professional career.