WB ‘committed to develop Bangladesh’

The World Bank’s portfolio in Bangladesh has nearly doubled in the last six years to $11.6 billion, with the country being one of the largest beneficiaries of concessional credit. The Washington-based multilateral lender was among the first development partners to support Bangladesh following its independence. Since then, the World Bank has committed over $30 billion, mostly in grants, interest-free and concessional credits to Bangladesh. During the forum, Schafer exchanged words with the finance minister and other senior government officials, civil society representative and development partners.

Source: https://www.thedailystar.net/business/news/wb-committed-develop-bangladesh-1861024

ADB aims to help Bangladesh achieve SDGs

Asian Development Bank (ADB) Vice-President Shixin Chen reaffirmed the multilateral lender’s commitment to help Bangladesh achieve its Sustainable Development Goals (SGD) while addressing the Bangladesh Development Forum. Ever since Bangladesh became an ADB member in 1973, the bank has mobilised more than $25 billion in loans and grants to help bring better infrastructure, public services, and social development outcomes to the people. Bangladesh is now a global example for economic progress with an average GDP growth rate of more than 6.7 per cent over the last decade. The key challenges ahead include increasing investments, both public and private, to close infrastructure gaps, improve skills, diversify the industrial base and improve the business climate, he said, adding that Bangladesh has made serious efforts to meet SDGs.

Source: https://www.thedailystar.net/business/news/adb-aims-help-bangladesh-achieve-sdgs-1861018

Make prompt LC payment or face the music

The central back yesterday instructed banks to make their import payment to corresponding foreign banks on time or else strict actions will be taken against the errant lenders. A good number of banks have recently showed an unwillingness to make import payments on time, which has had an adverse impact on the country’s international image. Senior bankers welcomed the initiative, saying that many foreign banks are reluctant to accept letters of credit (LC) issued from Bangladesh as a few local lenders frequently breach the terms and conditions while making payments. The banks are also forced to pay additional interest to their corresponding lenders due to their failure to settle LCs promptly. Besides, the confirmation charge for LCs is also on the rise as a result of the added pressure on the country’s foreign exchange reserve. Confirmation fees are a security mechanism that eliminates risks for exporters. When exporters are not comfortable with the LC-issuing bank, usually due to insolvency risks or local political factors or sometimes both, they may seek an additional guarantee for the LCs. Malpractice in the industry has also had a negative impact on the country’s balance of payments. In breach of global norms, some banks do not make import payments in order to provide extra facilities to their clients, said a bank official requesting anonymity as he is not authorised to speak with media. Clients get extra time to adjust the bank loans against their LCs if their lenders do not duly make import payments.

Source: https://www.thedailystar.net/business/news/make-prompt-lc-payment-or-face-the-music-1861042