Bangladesh to attain Highest Growth in Asia
The Bangladesh Economy will grow at 8 percent this fiscal year, which would be the highest in Asia, as per the latest forecast of the Asian Development Bank. The forecast is close to the government target of 8.2 percent growth in fiscal 2019-20. Last fiscal year, Bangladesh pulled off 8.13 percent GDP growth. The Manila-based multilateral lender disclosed the growth forecast while releasing its ‘Asian Development Outlook 2019 Update’ at its office in Dhaka yesterday. Buoyant exports, robust private consumption, higher remittance, accommodative monetary policy and ongoing reform to improve business climate and high infrastructure spending helped Bangladesh attain high growth. Buoyant exports, robust private consumption, higher remittance, accommodative monetary policy and ongoing reform to improve business climate and high infrastructure spending helped Bangladesh attain high growth. Private investment edged up to 23.4 percent in fiscal 2018-19 from 23.3 percent a year earlier. Public investment expanded from 8 percent to 8.2 percent and total investment contributed 2.8 percentage points to growth. Bangladesh should highly concentrate on export diversification and explore new markets such as Canada and Australia. Food imports continues to be lower, assuming a good harvest and revival of rice import duty. India will grow at 7.2 percent and Vietnam 6.7 percent, according to the Bank.
Written-off Loans rise in Q2
Loans written off by Banks surged 21 percent to Tk 54,463 crore in the second quarter of the year from a quarter ago as the lenders try to clean up balance sheets and paint a rosy picture of their health. As much as Tk 674.38 crore was written-off between April and June, in contrast to Tk 557.30 crore a quarter ago, according to latest data from the Bangladesh Bank. The Central Bank has recently eased its write-off policy, which has encouraged Banks to tidy up the balance sheet artificially, according to Experts. BB revised the policy to allow Banks to write off default loans that have been languishing in the bad category for three years, down from five years previously. Furthermore, lenders do not have to file any case with money loan courts to write off delinquent loans worth Tk 2 lakh, up from Tk 50,000 previously. Banks have failed to recover 76 percent of the total written-off loans since January 2003 when the Central Bank introduced the policy. The write-off policy has become one of the pivotal avenues for Banks to show a lower volume of non-performing loans. The Central Bank has recently announced to provide liquidity support to the Banking sector, but it is not good for the economy as many lenders are already burdened with NPLs, according to the Former Governor.
Stocks edge down after bumpy ride
Stocks ended marginally lower on Wednesday, extending the losing streak for the second straight session, as risk-averse investors continued their selling binge on large-cap shares. The market opened on negative note and the key index shed over 50 points in the first half of trading, but recovered most of the losses during the last half to end with nearly 7.0 points lower. DSEX, the prime index of the Dhaka Stock Exchange [DSE], went down by 6.98 points or 0.14 per cent to settle at 4951. Risk-averse investors continued their selling binge on large-cap stocks like Grameenphone, BATBC, Brac Bank, National Life Insurance and Islami Bank contributed 15 points index fall jointly, according to an Analyst. The Institutional Investors also followed cautious stance and are waiting for the Central Bank’s latest move about liquidity support to the Banks for boosting their investment in the country’s Capital Market. Telecommunication witnessed the highest loss of 0.85 per cent, followed by food 0.81 per cent, Banking 0.56 per cent and financial institutions 0.53 per cent.
Climate-friendly Tax Reform for BD boost GDP: Report
Tax reform – including putting price on carbon emission, abolishing subsidies on fossil fuel and using the revenue in infrastructure, social spending and green-tech in textile sectors – could help Bangladesh boost Gross Domestic Product [GDP], create new employment and protect environment, according to a latest report. The proposed measures could help adding US$6.9-$7.8 billion to GDP, while saving 18.5-19.9 mega tonnes of carbon and $405-$429 million in energy imports and create employment for 0.50 million by 2025. Cambridge Econometrics, a UK-based economics consultancy, has modelled the impacts of two preliminary scenarios-infrastructure and social in Bangladesh. These included putting a price on carbon emissions and abolishing fossil fuel subsidies, while using the revenues to invest in clean technologies, infrastructure and social spending.
Visa to launch QR Payments in BD
Visa, the global leader in digital payments technology, announced its plans to launch QR payments in Bangladesh, enabling consumers to link their credit, debit and prepaid cards to their mobile Banking apps to ‘scan and pay’ for their purchases, according to a statement. Visa is working with various Banks and partners across the country to enhance the acceptance of digital payments. The cardholders of these participating Banks can make payments through QR codes at merchant locations by using their Mobile Banking application. Consumers will soon be able to make QR payments at both retail stores and on e-commerce websites. Merchants can accept these payments by simply displaying a QR code in their stores or on their mobile phones.
Govt allows 500 tonnes of Hilsa Export to India
The government has allowed export of highest 500 tonnes of hilsa to India during Durga Puja. The commerce ministry took the decision yesterday as a gesture of goodwill, according to Md Abdul Latif Bakshi, the ministry’s public relations officer. Only one trader will get the chance to export Hilsa to India. The five-day Durga Puja is set to begin on October 4.
Biman offers Discount on Intl, Domestic Routes
Biman Bangladesh Airlines is offering discount on five international and four domestic routes during the three-day 8th Asian Tourism Fair, that begins in the capital today [Thursday], reports BSS. The national flag carrier is offering 20 per cent discount on five international destinations – Singapore, Delhi, Bangkok, Kathmandu and Kolkata – while 10 per cent on four domestic routes – Cox’s Bazar, Saidpur, Rajshahi and Barishal. The discount will be offered only from the Biman pavilion at the fair, to be held at International Convention City, Bashundhara marking the World Tourism Day.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
|DSEX||4951.73673||↓ 6.98||↓ 0.14%|
|DJIA||26,970.71 ||↑ 162.94||↑0.61%|
|FTSE100||7,289.99||↓ 1.44||↓0.02% |
|Nikkei 225|| 22,069.28||↑49.13 ||↑0.22%|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$ 56.51||↑ 0.02||↑ 0.04% |
|Crude Oil (Brent)||$ 62.35 ||↓ 0.04 ||↓ 0.06%|
|Gold Spot||$ 1,508.93||↑ 4.88 ||↑0.32%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 82.7822|
|GBP 1||BDT 102.713|
|EUR 1||BDT 90.8675|
|INR 1||BDT 1.16636|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<