MoF-Bangladesh Bank joint body to recover BDT 96.69 billion from 25 top defaulters
A joint committee of the Ministry of Finance (MoF) and the Bangladesh Bank (BB) will be formed to realize BDT 96.69 billion from 25 top default companies. The main tasks of the proposed panel will be to find out the barriers, particularly legal issues, recovery of classified loans and make necessary recommendations for realizing the debts. The proposed committee is supposed to submit a report after detecting the barriers to realizing the default loans. It would suggest how to eliminate those and reform the laws to stop loan- defaults culture within next 45 days.
Alternative Dispute Regulation (ADR) can bring Non-Performing Loan (NPL) to tolerable level
The Alternative Dispute Regulation (ADR) is essential in the commercial sector, including banks, to settle a large number of pending disputes and reduce a huge amount of Non-Performing Loan (NPL). “ADR is that mechanism which resolves disputes more efficiently and amiably by finding the self-made process best suited to the parties,” Additional Managing Director of Mutual Trust Bank said. A Bangladesh Bank senior official said the central bank is taking necessary steps to accelerate the ADR process for reducing NPL. The BB official urged all commercial banks, including Islami Bank Bangladesh Limited (IBBL) and Rupali Bank and Pubali Bank, to come forward for settling their cases under the ADR process. In Malaysia, around 99 % cases are settled through the ADR process. In the Netherlands, 95 % cases are settled through the process.
Luna Shamsuddoha joins state-owned Janata Bank as first ever female chairman
Luna Shamsuddoha has joined as chairman of the state-owned Janata Bank Limited. She will be the first woman to head any state-owned bank in Bangladesh. Luna was a member of the bank’s board since June 2016, said a press release on Wednesday, reports BSS.
Thrust on addressing loopholes of insurance policy
Speakers in a roundtable Tuesday stressed the need for all-out efforts from stakeholders to develop the country’s neglected insurance sector. They sought professional support from the stakeholders to brighten the image of the insurance sector addressing the loopholes of insurance policy, said a statement issued by Bangladesh Insurance Association (BIA). The Insurance Development and Regulatory Authority (IDRA) is set to crack down on excessive commissioning by insurance companies to get business as it creates an unhealthy competition in the industry. The government has taken a BDT 6.32 billion project for much-needed upgrade of the insurance regulator with the view to developing Bangladesh’s insurance sector.
NBR to focus on framing steady fiscal policies
From now on National Board of Revenue (NBR) will focus on framing consistent fiscal policies to attract more investment and collect more revenue, said its chief on Wednesday. The NBR chairman said the revenue board will take stern actions against the tax officials, if any valid complaints are made against them. Abdul Khalek, convener of trade, tariff, taxation and company affairs subcommittee of Foreign Investors’ Chamber of Commerce and Industry (FICCI), gave a presentation incorporating FICCI’s proposals to make fiscal laws more business-friendly. The proposals include cut in corporate tax by phases, reviewing applicability of retrospective effect of tax laws, and not to deduct tax at source from non-resident Bangladeshis in case of having double taxation agreement (DTA) with Bangladesh.
A 1,320 MW power plant in Chittagong on way
A Chinese consortium is set to build a 1,320-megawatt coal-based power plant at Mirersarai in Chittagong on a build-own-operate (BOO) basis for about USD 2.5 billion. The consortium will supply electricity for the next 25 years for 8.1499 cents per kW/h (BDT 6.5199), which was approved yesterday at a meeting of the cabinet committee on purchase chaired by Finance Minister. The committee approved the purchase of electricity from the consortium of Hangzhou Jinjjang Group, Hangjhou Zhengcai Holding Group and Jindun Energy Equipment (Hong Kong) under the Quick Supply of Energy and Power (Special Act). The consortium will bear the cost of purchasing land, setting up 25 kilometers of 400 KV double circuit transmission line and other expenditures, according to the proposal from the power division. The Chinese party told the power division that they can implement the first unit, which would generate 660 MW of electricity, within 48 months of the project taking effect and the second unit within 52 months. They will have to spend about USD 2.5 billion to implement the whole project, and a Chinese bank has committed to provide the loans of up to USD 2 billion at low interest, according to power division officials. Super-quality imported coal will be used for the plant and it is likely to be imported from Australia, the consortium told the power division. About BDT 1.5 trillion will be needed to purchase electricity from the company over 25 years. The purchase committee also approved another proposal for setting up 105 MW power plant at Shikalbaha in Chittagong by a consortium of Baraka Patenga Power and Royal Homes. The sponsor company will set up the power plant on BOO basis, with the tenure being 15 years. The government would purchase electricity from the diesel-based power plant at 10.4950 cents per kW/h, which is equivalent to BDT 8.2553.
Chittagong industries to get LNG from May
The businesses and industries in Chittagong will get supply of LNG from the first week of May this year. The liquefied natural gas (LNG) will start arriving from April 25. The businesses and industrialists will get the first priority in the supply of the imported LNG as they have been suffering from the gas crisis since 2009.
BTRC sets new rate for international call termination
The government is set to transform about 67 kilometers of meter gauge rail line into dual gauge for BDT 16.83 billion to provide railway transit to India, Nepal and Bhutan and increase trade among the countries. The project, for which India would finance 81 % of the cost, got the green light yesterday at the meeting of the Executive Committee of the National Economic Council. By transforming the rail link from Parbatipur to Kaunia in Rangpur to broad gauge, Bangladesh can establish railway transit with India, Nepal and Bhutan through the Rohanpur-Singabad railway link and Radhikapur-Birol railway link. The project will be financed from the Indian Line of Credit (LOC) so that alongside trade and commerce between the two countries, it will also facilitate India’s wish for getting transit through Bangladesh for transshipment of goods, said a finance ministry official.
Source: http://www.thedailystar.net/business/BDT -1683cr-project-transform-rail-connectivity-india-1541218
Confidence Group signs deal with Power Development Board
Confidence Power Bogra Unit-2 Limited, a sister concern of Confidence Group has recently signed the Power Purchase Agreement (PPA) with Bangladesh Power Development Board (BPDB) for their HFO powered power plant based in Bogra, according to a statement. • This project will contribute a combined capacity of 113 MW to the National Power Grid. Confidence Power Bogra Unit-2 Limited will establish the said power plants at an estimated cost of USD 90 million with brand new European Engines from renowned German company MAN.
Bangladesh-Malaysia agrees to start negotiations on PTA
Bangladesh and Malaysia have agreed to start negotiations on Preferential Trade Agreement (PTA) to boost trade further. The consensus was made at second Foreign Office Consultations (FOC) between Bangladesh and Malaysia held at the Ministry of Foreign Affairs of Malaysia in Putrajaya on Wednesday.
Growth not enough to be Middle Income Country (MIC), inequality prevails
Asian Development Bank (ADB) President Takehiko Nakao finds Bangladesh’s economic growth not enough to become a higher-middle-income country (MIC) in the set timeline and says inequality a major problem. According to him Bangladesh needs to clock in at least 10% economic growth for the next two decades if it wants to become a developed country by 2041. While offering his institution’s help in dealing with development issues, the ADB chief said higher investment in infrastructure, better investment climate, and extended foreign direct investment (FDI) growth like in Vietnam are an imperative. The ADB President assured Bangladesh of expanding financial support, including possible investment in the planned second Padma Bridge project. Under ADB’s current Country Partnership Strategy for Bangladesh, it proposes a total of USD 8.0 billion in assistance, including for non-sovereign operations, during the period 2016-2020. The proposed amount is 60% up from USD 5.0 billion in 2011-2015. In 2016-2017 ADB approved USD 2.5 billion in sovereign and USD 600 million in non-sovereign assistance.
Foreign investors demand 5pc corporate tax cut
Foreign investors in Bangladesh yesterday demanded cuts in corporate tax at least 5 percentage points to attract foreign funds and create expansion opportunities for businesses. “We proposed reducing the corporate tax in phases so that the government’s revenue generation does not face any big fall,” said Abdul Khalek, convener of tariff, trade, taxation and corporate law committee of the Foreign Investors’ Chamber of Commerce and Industry.
TU application rejection growing in Ctg
The rate at which application for trade union registration is rejected has been increasing in Chittagong zone over the year while the rate is decreasing in Dhaka zone. Following the Rana Plaza Building collapse in 2013 that killed more than 1,100 people, mostly garment workers, the government amid global pressure was forced to allow increased number of trade union registration in readymade garment sector.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$61.65||↑0.01||↑0.02%|
|Crude Oil (Brent)||$64.66||↓0.07||↓0.11%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 82.94|
|GBP 1||BDT 114.03|
|EUR 1||BDT 101.12|
|INR 1||BDT 1.27/row_column]|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.