Bank debt target likely at Tk 880b

The government is likely to set its bank borrowing target at Tk 880 billion to partly finance the budget deficit for fiscal year 2020-21. A senior official familiar with the public-debt management said on Wednesday the government will borrow the money from all banks by issuing Treasury Bills and Bangladesh Government Treasury Bonds to close budget gap, defined as the difference between overall expenditure and revenue and other receipts.The government has already exceeded its revised bank borrowing target fixed at Tk 729.51 billion. Earlier, the government had lifted its bank borrowing target by more than 54 per cent from the original goal of Tk 473.64 billion for the outgoing fiscal year. The government is set to make a net borrowing of nearly Tk 142 billion from the country’s banking system in June, the last month of the FY ’20. The government may take up to Tk 260 billion as gross borrowing from the banking system in June 2020 by issuing T-bills and bonds, according to the auction calendar, issued by the central bank recently. The government’s net bank borrowing may reach Tk 141.80 billion in a single month (June), after deducting Tk 118.20 billion against the government securities that would be mature in the month. Besides, the government is eligible for borrowing Tk 120 billion through using the ways and means advances (WMAs) along with the overdraft (OD) drawing facilities from the central bank on the same ground.

Source: https://today.thefinancialexpress.com.bd/first-page/bank-debt-target-likely-at-tk-880b-1591810837

Stocks end flat for investors’ apathy

Dhaka stocks finished almost flat with a sluggish turnover on Wednesday, as the ongoing coronavirus pandemic and floor price limitation kept the investors watchful. The Dhaka Stock Exchange (DSE) key index – DSEX – went up by 4.37 points or 0.11 per cent to close at 3,966. Turnover slumped to Tk 594 million, which was 12 per cent lower than the previous day. The investors did not show any enthusiasm for buying shares at current price level amid the fast-spreading Covid-19 pandemic.The DSE core index is hovering at 3,960 points in the last few sessions, as the investors are reluctant to make any fresh investment in stocks amid gradual worsening of the pandemic situation. The death toll from Covid-19 outbreak and the number of detected patients keep rising rapidly in recent days. The total death from the deadly virus infection reaches 1,012, and the number of infected person stands at 74,865 in the country as of Wednesday (June 10).Of the issues traded, 235 remained unchanged, while only 24 issues advanced, and 15 declined on the trading floor. Two other DSE indices also edged up. The DS30 index, comprising blue chips, advanced 3.15 points to finish at 1,332, and the DSE Shariah Index gained 1.50 points to close at 919.A total number of 12,512 trades were executed in the day’s trading session, with trading volume of 21.88 million shares and mutual fund units. The DSE market-cap also inched up to Tk 3,105 billion, from Tk 3,102 billion in the previous session. Pharma sector dominated the turnover chart, grabbing 53 per cent of the day’s total turnover. BeximcoPharma topped the turnover chart with shares worth Tk 93 million changing hands, followed by GlaxoSmithKline, Beximco, Meghna Petroleum and Central Pharma. BeximcoPharma was the day’s best performer, posting a gain of 3.28 per cent, while Meghna Cement was the worst loser, shedding 3.07 per cent.

Source: https://today.thefinancialexpress.com.bd/stock-corporate/stocks-end-flat-for-investors-apathy-1591805523

Finance minister draws a bead on economic recovery

The national and global lockdown measures aimed at battling the Covid-19 pandemic have taken their toll on Bangladesh’s industrial production, obliterating tens of thousands of jobs, incomes and demand. And for the first time in 30 years, the poverty curve, which has been on the downward since fiscal year 1992, is set to reverse the trend. Compared to May 2019, firms reported they operated at only 58.8 per cent capacity in May. For the first time since 1980, Bangladesh is forecasted to post its lowest-ever GDP growth. The World Bank earlier this week said the economy would grow by 1.6 per cent in FY20, in a stunning decline from the 8.15 per cent logged last fiscal year. Non-listed companies are expected to see a 2.5 percentage points cut in tax to 32.5 per cent from 35 per cent now. The current rate of corporate tax has been unchanged for the last six years, showed data from the National Board of Revenue. The ERG study finds that 57.6 per cent of the firms remained closed even after 45 days of the announcement of the lockdown. More than a quarter of the firms reported about their inability to pay salaries beyond May and 80 per cent would not be able to pay beyond September. In another rapid survey among 42 firms recently, the Centre for Policy Dialogue said all the firms claimed that there has been an adverse impact on export owing to Covid-19. And 73 per cent reported an effect on production and import. In order to stimulate investment and give relief to businesses, the government is likely to bring down the turnover tax rate for small and medium enterprises recording turnovers of Tk 50 lakh to Tk 3 crore annually.

Source: https://www.thedailystar.net/business/news/finance-minister-draws-bead-economic-recovery-1912393