Remittance tumbled 22.68 percent year-on-year in September due to a decline in the income and savings of Bangladeshi expatriates living in the Middle East as a result of the oil price slump. Migrant workers sent home $1.04 billion last month, according to the Bangladesh Bank’s provisional data. The amount is 11.83 percent lower than August’s receipts of $1.18 billion. September’s receipt means remittance saw a huge fall in the first quarter of the fiscal year: some $3.23 billion was received, down 17.82 percent from a year earlier. Overall, remittance fell 2.54 percent year-on-year to $14.93 billion in fiscal 2015-16, despite a significant rise in migrant outflow in the previous two fiscal years.
The growth rate climbed to 16.2% in August from 16% in July. It was the highest 16.8% in June, above the monetary target of 16.7% set for September. The total credit to private sector stood at BDT 6719.0 billion in August. The upward trend of private sector credit growth is still not a concern for Bangladesh Bank as Advance Deposit Ratio (ADR) is far lower than the authorised limit, said Allah Malik Kazemi, change management adviser to the central bank. The average ADR in the banking sector was 70.8% as of July, far below the regulatory limit of 80%, accordingto the Bangladesh Bank data. The BB official expressed concern about the rising consumer financing, saying that loan growth is not so qualitative.
BB’s fund for increasing export oriented textile, leather sector
Bangladesh Bank (BB) has established the Green Transformation Fund (GTF) to accelerate sustainable growth in export oriented textile and leather sectors conducive to transformation of green economy in the country. “It has been decided to stipulate a provision for a participation agreement to be signed between Bangladesh Bank and intended ADs (Authorised Dealer) to further fortify the financing arrangement under GTF,” said a BB circular here today. ADs have to apply in written to general manager, sustainable finance department, Bangladesh Bank, head office to enter into the agreement.
BB asked to confiscate bank shares of Bangabandhu killers
The Bank and Financial Institutions Division has directed Bangladesh Bank to take necessary steps for confiscating Jubilee Bank shares of two self proclaimed killers of Bangabandhu. Earlier, Directorate General of Forces Intelligence (DGFI), he military intelligence agency, sent a letter to the division regarding the issue, according to a letter from BFID issued to central bank Governor Fazle Kabir on Monday. Col (retd) Syed Farooq Rahman and Col (dismissed) Khandaker Abdur Rashid hold 85,000 shares of the bank, according to the letter signed by Assistant Secretary Md Mufakarur Uddin Khokon. The central bank was also asked to take actions against corrupt staff and management of the bank, said an official of the banking division, seeking anonymity. The bank was established in Khoksa upazila in Kushtia in 1913. In 1985, BB gave its permission to run the bank with no branches. Price of each share is Tk25.
Timeline expansion for encashment of export proceeds agreed
The Bangladesh Bank (BB) and the Business Initiative Leading Development (BUILD) held an inclusive meeting to review the status of reforms placed by the Financial Sector Development Working Committee (FSDWC) of the latter. Held at the Conference Room of BB on Sunday the meeting was co-chaired by the BB Deputy Governor S.K. Sur Chowdhury and the Dhaka Chamber of Commerce and Industry (DCCI) President Hossain Khaled. BUILD CEO Ferdaus Ara Begum told the meeting that BUILD had already tabled 80 reform proposals through its Financial Sector Development Working Committee and finally placed through the PSDPCC at the Prime Minister’s Office. She informed that 16 proposal were implemented and 42 others were yet to be approved while 35 others were being reviewed by the corresponding bodies of the government for implementation. She then updated the meeting that 26 proposals related to financial sector development and drew the attention of the meeting to get them implemented.
Stocks finished almost flat Monday amid choppy trading as investors were active both sides of the trading fence throughout the trading session. Market insiders said some investors continued on profit taking mood their stocks that saw substantial gain in the past few days, while some took position on sector specific stocks ahead of corporate declaration, closing the market in flat territory. The market started in consolidation mode which turned into an uptrend within half an hour followed by a buoyant mid-session. In the final hour, index was unable to hold on to the same trend, ultimately finished the session where it started the day. DSEX, the prime index of the Dhaka Stock Exchange (DSE), finished at 4,691.14, advancing 0.21 point over the previous session.
The government’s revenue earnings from the prime bourse fell 20 per cent in the first-quarter (Q1) of the current fiscal year (FY) compared to the same period of the previous FY as trading volume was on the decline. Market insiders said on the back of falling trade volumes, the government earnings from the premier bourse fell accordingly as earnings is related to trading volume. The government bagged tax worth about Tk 303 million in the first three months for July-September period of the FY 2016-2017, which was Tk 379 million in the corresponding period of the previous fiscal, according to statistics from the Dhaka Stock Exchange (DSE). Of the total revenue earnings of Tk 303 million in the first three months of the FY 2016-17 for July-September, Tk 247 million came from the TREC holders’ commission and Tk 56 million came from the share sales by sponsor-directors and placement holders, the DSE data showed.
Extreme poverty in Bangladesh declined further to 12.9 per cent in the financial year (FY) 2015-16, according to the latest Bangladesh Development Update, released by the World Bank (WB) in Dhaka Monday. The Update has projected 6.8 per cent economic growth for the country in the current financial year (FY 2016-17) — 0.4 per cent less than the government’s target. The government has set a target of 7.2 per cent growth in the country’s Gross Domestic Product (GDP) for the FY2017. “Without boosting Total Factor Productivity growth and private investment relative to GDP, Bangladesh is unlikely to sustain 7.0 per cent growth going forward,” the WB Update said. Based on its updated global extreme poverty measurement methodology, the global lender in its report titled “Poverty and Shared Prosperity 2016: Taking on Inequality” said the rate of alleviation of poverty in Bangladesh is impressive.
Industries Minister Amir Hossain Amu Monday said Bangladesh wants to set up a urea fertilizer factory in Iran under joint venture. “We can also take a noted company as a third partner in the project,” he said during a meeting with Iran’s Isfahan Province Governor General Rasoul Zargarpour at the governor’s office. During the meeting, Amu said the bilateral relation between Bangladesh and Iran is historically good. He stressed on accelerating the economic and commercial relations between the two countries through increasing industrialisation and investment. Under the leadership of Prime Minister Sheikh Hasina, Bangladesh is following liberal policy to attract foreign direct investment, he said adding that the government is setting up special economic zones to give special incentive to the foreign investors. He also expressed keen interest to impot railway wagon to transport ammonia gas for fertilizer factories.
Government mulls BDT 50.0 billion special fund to support jute millers
The government has taken a plan to create a BDT 50 billion special fund with an aim to facilitate the country’s jute millers, officials said. The advisory committee on jute took the decision in its last meeting on September 20 with State Minister for Textiles and Jute Mirza Azam in the chair. “Garments and textile sectors can use fund from the existing EDF for importing their industrial raw materials. But the jute sector can’t get low-cost loan facility from the fund although the sector uses domestic raw materials,” a source in the Bangladesh Jute Mills Association (BJMA) said. Besides, Bangladesh Jute Mills Corporation (BJMC) has called for bringing down the interest rate to single digit replacing the existing double digit rate. The BB provides loan from the EDF to the exporters to help them import industrial raw materials with a view to manufacturing the exportable items. A BB official said the EDF was launched in 2005 with an initial size of USD 100 million which was later increased to the shape of USD 2.0 billion.
Cyber boost for the country: Second submarine cable connection by March
The country is set to get connected to the much coveted second submarine cable by March next year despite the ongoing delays in its installation work caused by the prevailing high tide in the Bay of Bengal. “We are expecting the installation work to be completed by March, 2017”, Telecom Secretary Md. Faizur Rahman Chowdhury told FE after visiting the landing site of the submarine cable in Patuakhali this weekend. The telecom secretary noted that the undersea cable line is now just 10 kilometers away from its landing site at Kuakata. Bangladesh Submarine Cable Company Limited, a listed company which is also a subsidiary of the Post and Telecommunication Division, is responsible for the construction and maintenance of the submarine cable. Once completed, the new submarine cable connection is expected to be a cyber boost for the country as it will provide 1,300 gigabits per second (Gbps) of additional bandwidth in addition to 200 Gbps bandwidth received from the existing SEA-ME-WE-4 connection.
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