$1b in budget support arrives next week

About $1 billion in budget support is set to arrive in the next few days from three development partners to help the government meet its deficit financing for this fiscal year. Of the sum, $400 million is coming from the Asian Development Bank, another $400 million from the Asian Infrastructure Investment Bank and $216 million from the Japan International Cooperation Agency. Yesterday, the boards of the AIIB and the ADB approved the loan. The approval for the loan from Jica is expected by next week. However, the inflow would not be enough to prop up the country’s net international reserves enough to meet the $24.46 billion floor set by the International Monetary Fund to get the second tranche of the $4.7 billion sanctioned. The revenue authority will also have to issue an order to expand the electronic deduction of income tax at-source system in at least 6 more tax zones. The revenue authority has also mandated online payment of VAT amounts exceeding Tk 1 crore as per the ADB’s recommendations. Online payment of income tax for amounts exceeding Tk 20 lakh and pilot online personal income tax return filing by taxpayers with income exceeding Tk 70 lakh are two more conditions.

Source: https://www.thedailystar.net/news/bangladesh/news/1b-budget-support-arrives-next-week-3345481

Banks boast rises in deposits, advances, investments

Deposit in Bangladesh’s banking system increases and so does the number of millionaire accountholders, according to latest official statistics that come as solace for banks in the wake of liquidity crunch. Simultaneously, advances from the scheduled banks increased by Tk173.81 billion or 1.25 per cent to Tk14.05 trillion during the first quarter of 2023. According to the Bangladesh Bank statistics revealed Tuesday, the total deposit liabilities of the scheduled banks increased by Tk 250.52 billion to reach Tk16.13 trillion during the quarter. As the deposit was enhanced, the banks’ tendency of borrowing from the central bank declined by 6.88 per cent year on year. The banks altogether borrowed Tk 1.12 trillion from the BB at the end of the quarter under review. The entire borrowed amount from the BB in the previous quarter was Tk 1.20 trillion. The BB statistics also show that the country had seen an increase in the number of millionaires in January to March period of 2023 despite the inflation threat fuelled by the Russia-Ukraine war and Covid-19 pandemic. According to the data, the number of millionaire bank accountholders stood at 110192 in the first quarter of this year having an amount of Tk 6.91 trillion. The number of such accountholders was 109,946 in the corresponding period and these accounts had an amount of Tk 6.77 trillion.

Source: https://today.thefinancialexpress.com.bd/last-page/banks-boast-rises-in-deposits-advances-investments-1686680030

South Bengal Group to invest $33m in Sabrang Tourism Park

Bangladesh Economic Zones Authority (BEZA) has inked a land lease agreement with South Bengal International Trading Limited to set up a hotel and resort in the country’s first exclusive tourism park. With the deal, South Bengal International Trading Limited, a sister concern of South Bengal Group, has been allotted 2.0 acres of land to establish the new infrastructure in Sabrang Tourism Park. The Group has also involvement in other business activities including real estate, garments, trading, and tours and travels. According to the investment proposal, the company will build the hotel and resort with an investment of about $ 33 million. About 300 people will be employed through this investment. The tourism park, whose master plan was approved by Prime Minister Sheikh Hasina, has a total land area of more than 900 acres.

Source: https://today.thefinancialexpress.com.bd/trade-market/south-bengal-group-to-invest-33m-in-sabrang-tourism-park-1686677993