Banks, NBFIs given extended facility to get JICA-assisted fund
Bangladesh Bank on Monday extended refinancing facility for banks and non-bank financial institutions from the Japan International Cooperation Agency-assisted foreign direct investment promotion project. BB’s foreign exchange investment department, also the FDIPP-implementation unit, issued a circular on the day with a view to enhancing fund disbursement from the JICA-assisted Tk 537 crore fund. As per the policy change, a participating bank or NBFI would be allowed to seek refinancing loans up to Tk 30 crore that the entity has already issued to one of its client. Earlier, the amount of refinancing loans from the JICA-assisted FDIPP was limited to Tk 70 lakh for a client. The bank or NBFI would also be allowed to seek pre-financing loans worth above Tk 15 crore from the project. Earlier, a bank or NBFI was allowed to apply for pre-financing loans worth above Tk 70 lakh for any of its clients. Pre-financing allows banks or NBFIs to get finance from the project before loan disbursement to their clients, while the refinancing allows the entities to get fund after loan disbursement to their clients. In February last year, JICA gave the fund to Bangladesh to finance Japanese companies operating in Bangladesh, Japan-Bangladesh joint ventures and local private companies having significant business ties with Japan. Under the terms and conditions of the project, banks and NBFIs are allowed to distribute loans to private companies at 7 per cent interest rate for highest 10 years with the JICA-assisted fund. A company as a single unit is entitled to get highest Tk 30 crore in loans from the fund. The amount of loans may be increased, if necessary, with the approval of the fund steering committee.
Bangladesh trade deficit falls by 8.4pc in July-Feb
Bangladesh’s trade deficit eased by 8.42 per cent or $0.98 billion in July-February of the current 2018-2019 fiscal year compared with that in the same period of last fiscal year due mainly to a drop in import payment growth. According to the latest Bangladesh Bank data, trade deficit stood at $10.7 billion in July-February of FY19, down from $11.68 billion in the same period of FY18. In FY18, export growth was lenient against sharp growth in import. However, the situation turned around in the first eight months of FY19 amid strong growth in export and subdued import growth, resulting in ease in trade deficit. In July-February of FY19, import growth was 5.64 per cent and export growth 12.44 per cent. As per former interim government adviser AB Mirza Azizul Islam, the present state of trade deficit is comfortable for a developing country like Bangladesh as we have sufficient amount of foreign exchange reserves to meet import payments for more than five months. Mentioning US-China trade conflict as a special circumstance behind the country’s significant growth in export earnings, Azizul said that the government must focus on eliminating barriers to the growth of export sectors other than the readymade garments. He, however, expressed concern over the negative growth in import of capital machinery in the period after the previous year’s fall, saying that the trend suggested stagnancy in private sector investment.
South Korea wants to invest in BD
As per the South Korean Ambassador, South Korean companies are interested to invest in different sectors of Bangladesh. Samsung, SK, Hyundai and few other companies are eager to invest here, and their delegations would visit Bangladesh and discuss regarding businesses and others related issues. The envoy revealed it during an exchange of views meeting with Bangladesh Investment Development Authority (BIDA) Executive Chairman Kazi Md Aminul Islam in the city on Monday.
Turkey Delegates show interest to import medicine from Bangladesh
A visiting health and business delegation of Turkey has expressed interest in importing medicines from Bangladesh. The high level health-business delegation, led by President of Turkish Medicines & Medical Devices Agency (TMMDA) Md Hakki Gursoz, conveyed the eagerness of the Euro Asian country to import medicine from Bangladesh while visiting Beacon Pharma factory recently. Beacon Pharmaceuticals Limited is a Bangladeshi pharmaceutical company that develops generic version of drug and commercialises therapeutics. During the visit, the members of the delegation went through different sections of the factory and were impressed to see Beacon Pharma’s advanced production system and quality of its products. The delegates said they have visited the factory with a view to importing medicines, especially anti-cancer drugs, from Bangladesh. Turkey and Bangladesh can work together in manufacturing advanced life-saving drugs, said the president of the Turkish Medicines & Medical Devices Agency.
BASIS seeks special card to pay for Digital Marketing
Software developers are going to propose to the central bank to introduce a special card to help them bear the expenditure on digital marketing through social media platforms such as Facebook and Google. The proposal is part of a draft policy on digital marketing spending which the Bangladesh Association of Software and Information Services (BASIS) is set to place before Bangladesh Bank within the next few days. As per the BASIS President, digital marketing is the lifeline for digital companies and they want a proper policy support from the government that will ensure transparency of the industry and secure government revenue from this sector. Molla Nazrul Islam, special superintendent of the CID, chaired the meeting. Currently, BASIS members use two cards to bear the expenditure for purchasing software, webhosting and travelling. Some member-companies use the cards for digital marketing as there is no policy to this effect. One of the cards allows a company to spend $12,000 and the other $30,000 per year.
Jamuna Bank Limited donated Tk 10 million to Prime Minister’s Relief Fund
Jamuna Bank Limited donated Tk 10 million to Prime Minister’s Relief Fund to help the people affected by the devastating fire that broke out at Old Dhaka’s Chawkbazar, Churihatta area. Eng. A.K.M. Mosharraf Hussain, Chairman, Jamuna Bank Limited and Al-Haj Nur Mohammed, Chairman, Jamuna Bank Foundation handed over the cheque to Prime Minister Sheikh Hasina.
BATBC grabs turnover chart on Dhaka bourse
British American Tobacco Bangladesh Company (BATBC) topped the turnover chart of the premier bourse on Monday following investors’ increased participation. On the day, the company featured a turnover of above Tk 576 million on the Dhaka Stock Exchange (DSE). The company’s share price advanced 3.90 per cent or Tk 63 each to close at Tk 1673.30 per share on the DSE. Above 0.33 million shares of the company were traded through 9,563 trades executed on the premier bourse DSE. Meanwhile, a high net worth client of the Pictet, a leading investment in Europe, has purchased a significant amount of shares of the BATBC as per declaration. On Monday, the DSE featured a turnover of above Tk 4.18 billion of which 42 per cent came from transactions of the shares of top 10 leaders. Of other turnover leaders, Grameenphone grabbed 5.42 per cent of the market turnover after featuring a value of Tk 226.60 million. The company’s share price declined 1.73 per cent or Tk 6.50 to close at Tk 370.90 each.
Esquire Knit makes debut today
Esquire Knit Composite will make its debut trading today (Tuesday) on both the bourses under ‘N’ category, said a disclosure of the Dhaka Stock Exchange (DSE). Esquire Knit Composite will be 54th listed company in textile sector which accounts for around 5.0 per cent of total market cap on the premier bourse. Under the book building method, the company raised Tk 1.50 billion issuing 34.89 million ordinary shares. The company completed its IPO (Initial Public Offering) subscription during January 06 to January 20, 2019. Of the total shares, 60 per cent or 20.83 million shares (worth Tk 937 million) were reserved for eligible investors at a cut-off price. The remaining shares are offered for public subscription with 10 per cent discount. The cut-off price of Esquire Knit share was fixed at Tk 45 each for 20.83 million shares on July 14 last year by the institutional investors through electronic bidding.
Mastercard appoints new Director
Mastercard has announced the appointment of Rejaul Amin Sohail as Director, Account Management, Bangladesh. Sohail will build new relationships and also work on some of the key priorities in the country.
JU, Dream71 team up for Industry 4.0 products
A leading Bangladeshi software and app developer joined hands with Jahangirnagar University yesterday to explore technologies like artificial intelligence (AI), big data and the Internet of Things and develop products focusing on the fourth industrial revolution. Rashad Kabir, managing director of Dream71 Bangladesh, and M Mesbahuddin Sarker, director of the JU’s Institute of Information Technology (IIT), signed the agreement on the university campus. Currently exporting to over nine countries and with offices in Bangladesh and Japan, the company plans availing the expertise and skills of faculty members to grab a bigger share of the international market.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
|Nikkei 225||21,722.19||↓39.46|| ↓0.18%|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$ 64.52||↑0.12|| ↑0.19%|
|Crude Oil (Brent)||$ 71.11||↑0.01||↑0.01%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 83.3048|
|GBP 1||BDT 108.7550|
|EUR 1||BDT 93.6743|
|INR 1||BDT 1.1954|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<