BB seeks Tk 25.60b as export subsidy

The Bangladesh Bank (BB) has sought a sum of Tk 25.60 billion from the government to meet the demand for cash incentive/subsidy made by local exporters, officials have said. The central bank recently sent a letter to the Ministry of Finance (MoF), seeking the release of the third tranche of cash incentive/subsidy, they added. A high official of MoF said: “We have received a request from the central bank to release the third tranche of cash incentive/subsidy. We are now working on the matter. But it is not possible to say right now how much money will be released as cash incentive/subsidy,” he said. “Some Tk 25.60 billion is needed immediately to meet outstanding cash incentive/subsidy. Of the amount, some Tk 1.30 billion will be needed for the jute sector while Tk 24.30 billion for other sectors,” a central banker said.

Source: http://today.thefinancialexpress.com.bd/trade-market/bb-seeks-tk-2560b-as-export-subsidy-1515858161

Growing consumer class claims substantial loans

Consumer-credit flow grows stronger, indicating rise of the consumer class in Bangladesh, outweighing central bank’s diligent drive to divert loans to productive sectors. Increasing numbers of people are now using consumer-financing schemes launched by the commercial banks to whet their appetite for cars, motorbikes, air-conditioners, refrigerators and televisions, according to officials. The financing for consumption recipes surged by more than 35 per cent or Tk 101.65 billion during first nine months of the last calendar year following comparatively lower interest rates offered by the banks to attract more clients. They termed the trend “overexposed” for the country’s banking sector that happened at a time when Bangladesh needs increasing investment in productive sectors for achieving “inclusive” economic growth through creating employment across the country. Scheduled banks all together lent Tk 386.66 billion, which accounts for 5.14 per cent of the total outstanding loans, for consumer goods during the period under review against Tk 285.01 billion of 2016, according to a Bangladesh Bank (BB) confidential report.

Source: http://today.thefinancialexpress.com.bd/public/first-page/growing-consumer-class-claims-substantial-loans-1515776999

BB asks for banks’ recovery targets on top 20 defaulters

The central bank has asked commercial banks to set targets of loan recovery from top 20 defaulters for 2018 upon the approval by their respective board of directors. The Bangladesh Bank (BB) has also given the banks a 10-day timeframe for submitting their loan recovery targets to its concerned department. The banks have also been asked to submit the progress reports on the recovery of loans against the targets on a quarterly basis to the central bank 10 days after informing their boards.

Source:
http://today.thefinancialexpress.com.bd/public/first-page/bb-asks-for-banks-recovery-targets-on-top-20-defaulters-1515692392
http://www.thedailystar.net/business/banking/bb-asks-banks-be-tough-top-defaulters-1518601

Current account deficit hits a 15-year high

The country’s current account deficit reached a 15-year high in the first five months of the fiscal year on the back of higher import payments and moderate export growth. In the July-November period of 2017-18, the deficit stood at $4.43 billion, way higher than $683 million recorded in the same period a year ago, according to data from the central bank. The deficit is the highest since 2002-03, as data related to the current account before the year was not available from the central bank’s documents and website. The current account recorded a surplus of $176 million in 2002-03 and the previous highest deficit was recorded in 2010-11 when it stood at $1.68 billion.

Source: http://www.thedailystar.net/business/current-account-deficit-hits-15-year-high-1519591

Look into capital flight via import

The Centre for Policy Dialogue yesterday advised the government to investigate whether capital flight has taken place by way of sugar, edible oil and cotton imports. “There is no resemblance between export and import growth of garment and cotton,” said Mustafizur Rahman, distinguished fellow of the CPD, while unveiling the private think-tank’s latest study at an event held at the capital’s Cirdap auditorium. In the first four months of the fiscal year, the apparel export growth was recorded at 7 percent while the import growth of cotton was recorded at 75 percent, he said. “Despite global price stability of raw cotton and an upturn in the growth of garment exports, the high growth of over 75 percent in import payments for this item appears to be suspicious,” the CPD said in its State of the Bangladesh Economy in FY2017-18. There has not been any fall in yarn and fabrics import, neither has there been a sudden spurt in investment in spinning. Given the fall in prices of raw cotton, the high imports would allude to very high volumes, which reinforces the need for investigation into the matter, the CPD said.

Source:
http://www.thedailystar.net/business/look-capital-flight-import-1519597
http://today.thefinancialexpress.com.bd/first-page/rising-cotton-import-likely-conduit-for-money-laundering-1515861162
http://www.newagebd.net/article/32492/cotton-import-surge-raises-capital-flight-suspicion

Probashi Kallyan Bank (PKB) seeks to weigh up a provision of bank act

The authorities concerned are seeking to weigh up a certain provision of Probashi Kallyan Bank (PKB) Act-2010 for converting the bank into a commercial one instead of amending the law. To this effect, PKB in a letter has already sought necessary steps from Financial Institutions Division (FID) under the Ministry of Finance, officials said. They said if the law is amended, it will take time to turn the bank into a commercial one as it is a lengthy procedure. That is why they have requested the authorities concerned to consider section 4(5) of the act to help run the bank within a shortest possible time. As per section 4(5) of the law, the government can give permission to convert a bank into a scheduled bank by issuing gazette notification, according to them. With both the amendment to some sections of the law or provision 4(5), the specialised bank can be transformed into a scheduled bank, said a senior official.

Source: http://today.thefinancialexpress.com.bd/trade-market/pkb-seeks-to-weigh-up-a-provision-of-bank-act-1515858147