The central bank has so far distributed an amount of Tk 773.33 crore among 9448 women entrepreneurs during the last one decade till May 31, 2014 under its SME refinance scheme, Bangladesh Bank data revealed the information. According to statistics released by the central bank on Wednesday, the total disbursement of the fund stood at Tk 1,998.47 crore till May last, of which 61 per cent was disbursed among male entrepreneurs while the rest (39 per cent) among the women entrepreneurs.
“Loan disbursement among women entrepreneurs under refinance scheme exceeded the target,” said Masum Patwary, general manager, SME and Special Programme Department adding that the bank is getting good responses.  
Bangladesh Bank introduced the SME refinance scheme in 2004 with a view to promoting the country’s SME entrepreneurs. Initially the central bank started the programme with an amount of Tk 100 crore. The central bank took up the initiative to train up entrepreneurs across the country in a bid to create awareness of the SME business among them.
The central bank also directed the financial institutions to disburse at least 15 per cent loan from the refinance fund among the women entrepreneurs, said the SME and Special Programme Department GM.
In the initial stage disbursement of loan among the women entrepreneurs was not satisfactory, said also Patwary adding that the situation had become changed by this time and women are now getting adequate funds.
In 2007, total disbursement of loan among the women entrepreneurs under the refinancing fund stood at Tk 0.09 crore which shot up to Tk 200.24 crore in 2013. According to Bangladesh Bank, the banks distributed Tk 4.2 crore in 2008, Tk 31.15 crore in 2009, Tk 116.01 crore in 2010, 
Tk 117.22 crore in 2011, Tk 185.58 crore in the year 2012. During the first months of current year, till May 31, 2014 the banks disbursed about Tk 68.84 crore among the women entrepreneurs.
“The involvement of women in various entrepreneurial activities can empower them in social, economic and cultural fields, which is essential for attaining sustainable economic growth,” said SME consultant of Bangladesh Institute of Bank Management Sukumal Sinha Chowdhry. Country’s half of the population are women, so women’s participation in mainstream economy is very important to attain a sustainable economy, also said the SME consultant.
Bangladesh Bank has undertaken several steps to flourish women entrepreneurs across the country including awareness raising programme on refinancing scheme through using local and national media, arranging national seminar and conference.
The central bank along with other relevant ministries and financial sector has been working relentlessly for the development of country’s women entrepreneurs.  
The central bank as already established a separate department named SME and Special Program Department to help develop the women entrepreneurship, said the BIBM SME consultant. 
The central bank has also instructed the financial institutions to open a “Women Dedicated Desks” to help facilitate them in financial inclusion.
A women entrepreneur Mrs. Afreen, who is also a member of Bangladesh Women Chamber of Commerce and Industry (BWCCI), said that women entrepreneurs feel encouraged for running their business and thankful to the k for providing loans under the refinance scheme. She urged banks to provide more low interest loan for the betterment of the country’s women entrepreneurs.

The government has signed $1.18bn (1,209.86bn Japanese Yen) concessional loan deals with Japan for five development projects including a 1,200 megawatt coal-based power plant.

This is the largest ever loan deal between Bangladesh and Japan International Cooperation Agency (JICA).

The biggest loan deal comes after Prime Minister Sheikh Hasina’s recent visit to Japan.

The rate of interest of the Japanese financial package is 0.01% per annum which is payable in 40 years including a 10-year grace period.

Mohammad Mejbahuddin, Secretary of Economic Relations Division (ERD), and Mikio Hataeda, Chief Representative of JICA, have inked the deals yesterday in the city.

Finance Minister AMA Muhith, State Minister for Power, Energy and Mineral Resources Nasrul Hamid, Acting Ambassador of Japan to Bangladesh Hirioki Minami and JICA President Akihiko Tanaka were present at the signing ceremony of 35th of JICA.

The projects include construction of 1200MW coal-fired plant at Matarbari in Maheshkhali, natural gas efficiency improvement, inclusive city governance, haor flood management and livelihood improvement and small and marginal sized farmers agricultural productivity improvement and diversification of financing.

Under the power plant project, line, access road, township development, port development etc will be constructed. The project will get $406.22m loan from JICA.

The natural gas efficiency project is to improve efficient use and supply of natural gas by providing facilities for gas supply and efficient use of gas.

It will receive $231m as loan from JICA while inclusive city governance project will get $149.47m.

Inclusive city governance project is aimed at improving public services and promoting economic opportunities in five city corporations – Narayanganj, Comilla, Rangpur, Gazipur and Chittagong.

Small and marginal-sized farmers project will be given $97.20m. The project aims to increase agricultural productivity and diversity of the small and marginal-sized farmers.

Haor flood management project will be provided $149.47m. The objective of the project is to reduce damage from flood, improve access to basic infrastructure and increase agriculture and fishery productivity.

The works under the project include rehabilitation and construction of flood management facilities and rural infrastructures and implementation of agriculture and fishery promotion activities in haor areas in upper Meghna basin.

Japanese ODA loan (also called Yen Loan) are long-term low interest rate loans advanced to the developing countries and have the liability of being paid back. Assistance can be given to major projects of developing countries that generate larger impact on the economic growth, environmental improvement and social development of the countries, which are indispensable for achieving MDGs.

The obligation to repay Japanese ODA loans gives an opportunity to the recipient countries to develop an incentive to recover the investment cost as much as possible.

This encourages the countries to make efforts to ensure the sustainability of the development projects and leads to the attainment of the MDGs and their sustenance.

News:Dhaka Tribune/17-Jun-2014

After financial institutions, the central bank now brings all non-bank financial institution (NBFIs) under the early warning system to keep all their financial activities under constant monitoring.
The central bank yesterday formally introduced the early warning system for NBFIs in the backdrop of frequent financial scams in the country’s banking sector. “Introduction of the early warning system would help the NBFIs consolidate their financial base and make transactions more transparent and accountable,” said Bangladesh Bank governor Dr. Atiur Rahman while inaugurating the new system at the central bank’s conference room on Tuesday in presence of chiefs of NBFIs.
Despite having a little bit problem, the country’ banking sector stands on better footing as compared with other sectors, said the governor adding that the new system would bank the NBFIs more prudent. The central bank took a number of initiatives to introduce various elements of good governance in the banking sector in order to make the financial institutions more stable.
The central bank has already introduced camel rating System, Basel II,  automated clearing house, electronic fund transfer, online CIB, online banking, internet banking, mobile banking, national payment switch and e-commerce system with a view to making the financial sector more accountable and transparent, also said the governor.
Like the board of directors of financial institutions (FIs), the identification of risks in credit management is equally important to operate its business smoothly, said the governor. He also called upon the NBFIs to strengthen their risk management cells to cut the possible financial scams. Appreciating the role of risk management cell, the governor also asked the NBFIs to identify its weak areas to reduce the financial risks. Atiur also warned FIs to strictly follow the risk management guidelines of the central bank with a view to reducing the credit risk. The proper application of risk management cell would help the banks save from any devastation, also said the governor. “We have to implement the risk management cell and early warning system appropriately to uphold the customers trust on banking sector,” said Atiur.
Despite global and domestic economic shocks, country’s banking sector remains strong due to the rational policy and guidelines of the central bank, he added.
He also underscored the need for strengthening the issues of good governance for FIs for further economic development of the country. President of Bangladesh Leasing and Finance Companies Association Asad Khan demanded for reduction of interest rates.

The Independent/18-Jun-2014

Merchant bankers yesterday demanded reduction of corporate tax on merchant banks, which are non-listed companies, to 35 per cent in the next fiscal (2014-15) from the existing 37.50 per cent.
Leaders of Bangladesh Merchant Bankers Association (BMBA) placed the demand at a post-budget press conference at Purbani Hotel in the city yesterday. They also demanded stimulus package for small investors in the stock market and treating provisioning and write-off loss as tax deductible. BMBA vice president Md Akter Hossain Sannamat read out the proposals at the press conference while BMBA president Tanjil Chowdhury, BMBA secretary general Md Moshiur Rahman, executive committee member Md Moniruzzaman, among others, were also present.
In the proposed budget for 2014-15, the government reduce the corporate tax rate of non-listed companies to 35 per cent from the present 37.50 per cent, Md Akter Hossain Sannamat.
Among the capital market institutions, asset management companies are in 27.50 per cent tax bracket whereas stock brokers will have to pay 35 per cent, he said adding that only merchant bankers will have to pay 37.50 per cent taxes although they are the biggest sufferers in the stock market crash.
Even though merchant banks are also non-listed companies, the corporate tax rate of such companies remained unchanged at 37.50 per cent in the proposed budget for 2014-15, Sannamat said.
Merchant bankers are passing through serious financial troubles because of debacle in the country’s capital market, he said adding that many of the merchant banks will have to show losses in their income statement.
Thus, the government should also reduce the corporate tax of merchant banks to 35 per cent in the next fiscal from the present 37.50 per cent, the BMBA vice president said. Besides, such a reduction will not affect the government’s revenue collection, he thinks.
As per the government’s instruction, the merchant banks waived 50 per cent interest on account of affected small investors in the share market crash, he said.
Although the National Board of Revenue was supposed to treat the 50 per cent interest as ‘tax allowable expenses’ according to the instructions of Ministry of Finance, the interest is yet to be treated as allowable expenses, he said.

The Independent/18-Jun-2014

Bangladesh Development Bank Ltd (BDBL), the state-run specialised bank, has earned Taka 102 crore net profit during the 2013 year, which is Taka 18 crore more than the same period of previous year.

This was informed at the 4th Annual General Meeting (AGM) of the bank at its head office here.

Chairman of BDBL Board of Directors Professor Santi Narayan Ghosh presided over the meeting, which was attended, among others, by directors Dewan Nurul Islam, Kazi Morshed Hossain Kamal, Advocate M Abdus Salam, Syed Efter Hossain Piar, M Fayekuzzaman, M Mamun-al-Rashid, professor Dr Rustom Ali Ahmed and Khalilur Rahman Siddiqui.

BDBL managing director Dr M Zillur Rahman, Additional Secretary of Bank and Financial Institution Division of Ministry of Finance Gakul Chad Dash were also present.

Speaking on the occasion, Dr Zillur Rahman said the bank has sanctioned Taka 475 crore as loans in the year 2013.

Of the amount, Taka 33.91 crore for 19 long-term projects, Taka 40.15 crore for 498 SME projects and the rest Taka 400 crore were sanctioned for other ventures.

Daily Sun/18-Jun-2014