The Asian Development Bank on Friday cut its economic growth forecasts for the region, which has been dragged back by a continued slowdown in India despite positive data out of powerhouse China.

The ADB lowered its 2012 growth forecast for developing Asia, which comprises 45 nations, marginally from 6.1 per cent to 6.0 per cent. It also revised downward the 6.7 per cent growth outlook for 2013 to 6.6 per cent.

It is the second time the bank has slashed growth estimates for the region, after cutting April’s forecast of 6.9 per cent growth in 2012 to 6.1 per cent in October—the lowest rate since 2009 when the economy expanded by six per cent.

It said the adjustment was made following mixed third quarter data in which “positive events” were slightly outweighed by sluggish figures elsewhere.

“Recent downside developments are expected to pare 0.1 per centage points from developing Asia’s growth both this year and next,” the Manila-based lender said in a statement.

“Slower-than-expected growth for India, the newly-industrialising economies and the two largest Central Asian economies slightly outweighs the more rapid expansion in some major Southeast Asian economies,” the ADB said.

ADB’s growth forecast for China this year remained at 7.7 per cent, while India’s estimated rate fell from 5.6 per cent to 5.4 per cent for the 2012 fiscal year.

Data last week showed India’s economic growth for the July-September quarter eased to 5.3 per cent, extending a slowdown since the start of the year, although analysts said a modest recovery was looming.

The once-booming Indian economy has slowed sharply due to high interest rates, Europe’s debt crisis and sluggish investment caused by domestic and overseas concerns about policy-making and corruption.

A slew of recent Chinese data meanwhile suggests recovery may be around the corner, with official figures released Saturday showing that manufacturing activity in the world’s second-largest economy grew in November for the second consecutive month.

China’s economic growth hit a more than three-year low of 7.4 per cent in the third quarter from July to September.

ADB warned of the risks caused by uncertainties in the US and European economies, both of which are major export markets.

News: The Daily Sun/Bangladesh/8th-Dec-12

A senior official of the World Bank (WB) Friday said the bank wants to start the construction of the Padma Bridge without further delay resolving the present stalemate considering its importance of the bridge on Bangladesh economy and region as well.

World Bank Vice President and Head of Network for Sustainable Development Rachel Kyte said this in a meeting with Minister for Environment and Forests Dr Hasan Mahmud at Qatar National Convention Center (QNCC).

Dr Mahmud and Ms. Rachel are now in Doha to attend the 18th Conference of the Parties of the UN Framework Convention on Climate Change (UNFCCC).

“Ms. Rachel told me that they are looking at the matter of Padma Bridge with high importance and want to start construction of the bridge without any delay,” Dr Mahmud told reporters after the meeting.

In the meeting, the environment minister underlined the importance of construction of the bridge saying it will not only be a great boost for economic development of Bangladesh but also a leap for the people of the most climate vulnerable people of the southern parts of the country linking the area with other parts including the capital Dhaka.

The bridge will not only be part infrastructure development but an important step to protect the lives and livelihoods of the people of the region, he said.

News: The Daily Sun/Bangladesh/8th-Dec-12

The negotiation between the Anti Corruption Commission (ACC) and the World Bank over the allegation of Padma Bridge graft conspiracy ended without any consensus, finance minister AMA Muhith said Thursday.

"The negotiation between the ACC and the WB experts ended without any agreement" Muhith told reporters after a ceremony marking the handover of dividend to the government by IDCOL at the Secretariat office.

"The discussion has not been over, difference of opinion remains. The government will talk about the issue," the minister said.

The reporters asked whether there was any hope about WB financing for the Padma Bridge project, the minister said, "Whatever the media writes about the negotiation, I am not making any comment on the issue," Muhith said.

The Infrastructure Development Company Limited (IDCOL) paid Tk 1.2 million to the government as dividend for the FY 2011-12.

Iqbal Mahmood, Senior Secretary and Chairman, IDCOL, and Mahmood Malik, CEO, IDCOL, handed over the cheque to the Finance Minister.

IDCOL earned a net profit of Tk 6.2 crore for the fiscal under review with a 39 per cent growth over the previous fiscal.

IDCOL is one of the few state-owned entities that operate independently and pay dividends to the government. Last year IDCOL paid Tk 1.0 million as dividend to the government.

IDCOL finances large, medium and small infrastructure projects implemented by the private sector, and is the largest organisation working for promotion of renewable energy technologies in Bangladesh.

News: The Daily Financial Express/Bangladesh/7th-Dec-12

David Cowen

The chief of the visiting International Monetary Fund (IMF) mission, David Cowen, said Thursday the mission and the Bangladesh authorities reached an ad referendum understanding on a set of economic policies and reforms, focusing on pursuing sound fiscal and debt management, ensuring stable monetary and exchange rate conditions as well as strengthening the financial sector.

Mr. Cowen said the ad referendum understanding is subject to review by the IMF management and its Executive Board in the context of the first review under the ECF (Extended Credit Facility) arrangement.

"Upon the Executive Board's completion of this review, which is expected in January next, SDR (special drawing rights) 91.4 million or about US$ 141 million would be made available to Bangladesh," Mr Cowen added.

He said this at a press briefing at the conference room of the ministry of finance (MoF) on conclusion of the visit of the IMF mission on the first review under the ECF arrangement with Bangladesh.

In April last, IMF approved nearly US$1.0 billion ECF for Bangladesh to provide support to the country to maintain a healthy balance of payment (BoP) situation.

The Washington-based International Monetary Fund (IMF) team visited Bangladesh since Necember 27 and met with all relevant ministries, advisers and other officials concerned.

Mr Cowen said IMF reached an ad referendum, for a synergy of actions to maintain macroeconomic stability, build external buffers, and promote higher growth in the country.

"The government has agreed to contain its budget deficit (excluding grants) to 4.5 per cent of gross domestic product (GDP) in the current fiscal year, including the settlement of fertiliser subsidy overruns from FY 12, with moderate consolidation over the medium term," according to a press statement issued by the IMF.

Under the ECF arrangement, the performance of the Bangladesh in relevant areas has so far been generally sound, he added.

"Quantitative targets are broadly on track, with all performance criteria met at end June 2012 -- the first test date under the ECF."

News: The Daily Financial Express/Bangladesh/7th-Dec-12

The China Development Bank (CDB) and Russia's Sberbank signed an agreement here yesterday, with the aim of pushing forward financial cooperation between the two countries.

The signing ceremony took place on the sidelines of the 16th meeting of the Joint Commission for the Regular Meetings of Heads of Government of China and Russia, which was co-chaired by Chinese Vice Premier Wang Qishan and Russian Deputy Prime Minister Dmitry Rogozin.

Under the accord, which has a five-year validity, CDB and Sberbank will cooperate in such fields as Russia's large-scale government projects and infrastructure projects, international settlement and trade financing, correspondent banking, custody services, personnel training and experience exchanges, with a total volume of cooperation less than 2 billion U.S. dollars. The agreement has given priority to Chinese-funded projects in the areas of infrastructure, oil and gas, metal mining, electricity, telecommunications, agriculture and forestry.

The two banks will cooperate through such methods as comprehensive credit line, syndicated loans, finance lease and investment banking services.

News: The Daily Sun/Bangladesh/7th-Dec-12