FHM Huamyan Kabir

The Japan International Cooperation Agency (JICA)'s US$ 400 million loan effectuation deadline for the Padma Bridge project will expire tomorrow amid confusion over funding the World Bank, officials said Wednesday.

Ministry of Finance (MoF) officials said the JICA would activate its loan for Bangladesh's multi-billion-dollar Padma Bridge project only after getting green signal from the World Bank (WB).

"Since we do not know the outcome of the discussion at Washington between the Bangladesh delegation and World Bank officials, what will be the fate of the JICA loan is not clear yet," a senior MoF official told the FE.

"We have not yet requested JICA to extend the loan activation deadline further as we are waiting for news from Washington," he said adding they were hopeful of getting information from the global lender by today (Thursday).

The Prime Minister's International Affairs Adviser Gowher Rizvi is now in Washington to discuss with the global lender WB the issue of reviving its cancelled US$ 1.20 billion loan for the Padma Bridge.

Economic Relations Division (ERD) officials said they were yet to get any news from Washington or from the World Bank.

Earlier, JICA on August 31 extended its deadline for the fifth time offering Bangladesh government space to fulfil the WB's anti-graft measures for reviving the scrapped loan.

The US$ 615 million loan of another major co-financier Asian Development Bank (ADB) is still alive as it has extended the deadline for one month till September 30.

ERD officials said if the committed $400 million JICA loan is not activated by the stipulated deadline September 21 (Friday), it will stand scrapped automatically.

Last time, ADB and JICA have extended their loan activation deadlines asking the government to comply with the WB's conditions for receiving the scrapped loan.

"We still have another two days. We are hopeful of getting good news from the WB by tomorrow," a senior ERD official told the FE Wednesday.

He said since the PM's adviser Gowher Rizvi would inform the WB officials about the leave from office by 'accused' Dr Mashiur Rahman, the PM's Economic Adviser, we are hopeful of getting green signal from the global lender.

Government officials said that Dr Mashiur Rahman has applied for one month's leave to pave the way for reviving WB's $1.20 billion scarpped loan.

Meanwhile, Dr Mashiur Rahman Tuesday denied to clear his position about the leave petition.

The World Bank on June 29 scrapped its $1.20 billion loan for the $2.9 billion's worth Padma Bridge project alleging 'corruption conspiracy' in the bidding process of the project.

The Washington-based lender has also set four conditions for receiving its cancelled loan.

News: The Daily Financial Express/Bangladesh/20-Sep-12

Golam Hafiz Ahmed, Additional Managing Director of NCC Bank Ltd speaks at the 49th Foundation Course for the officers of the Bank at its training institute recently.

The 49th Foundation Training Course for the officers of the NCC Bank was arranged at the bank’s training institute recently.

Golam Hafiz Ahmed, Additional Managing Director of the Bank attended the opening ceremony as chief guest, said a press release. Golam Hafiz Ahmed in his address emphasised on importance of month-long training and advised the participants to acquaint themselves with banking knowledge to prepare themselves for leading the Bank in future.

Mohabbat Khan, Deputy Managing Director attended the ceremony as special guest Principal of the Training Institute Jagadish Chandra Debnath co-ordinated the training.

News: The Daily Sun/Bangladesh/20-Sep-12

SA Chowdhury, CEO and Managing Director of Bangladesh Commerce Bank Limited inaugurates a branch of the Bank in Dinajpur recently.

The 34th branch of Bangladesh Commerce Bank Limited (BCBL) was opened at Dinajpur recently.

SA Chowdhury, CEO and Managing Director of the Bank inaugurated the branch as chief guest, said a press release.

Dr. Muhammad Asaduzzaman, Deputy Managing Director of the Bank was present on the occasion as special guest.

News: The Daily Sun/Bangladesh/20-Sep-12

Badiur Rahman, Chairman, Board of Directors of Al-Arafah Islami Bank, presides over the 229th meeting of the board at the Bank's board room in Dhaka Wednesday.

The 229th meeting of the Board of Directors of Al-Arafah Islami Bank Limited was held at the board room of the Bank Wednesday.

Badiur Rahman, Chairman, Board of Directors of the Bank presided over the meeting, said a press release.

The meeting reviewed overall business performance of the Bank.

Al-hajj Md Harun-Ar-Rashid Khan, Al-hajj Nazmul Ahsan Khaled, Al-hajj Abdul Malek Mollah, Al-hajj Hafej Md. Enayetullah, Al-hajj Abdul Moktadir, Mizanur Rahman Joddar, General Manager of Bangladesh Bank, Ekramul Hoque, Managing Director of Al-Arafah and Md. Mofazzal Hossain, Company Secretary and Deputy Managing Director were present in the meeting.

News: The Daily Sun/Bangladesh/20-Sep-12

Twenty-seven banks are not following the directives of the central bank to cut down the interest rate spread.

Bangladesh Bank has long been asking these banks to bring down their spread, the gap between the interest rates on credit and deposit, to the permissible limit of 5 percent.

The spread at the 27 banks is more than 5 percent. Six banks have more than 7 percent spread, according to data from the central bank.

In a bankers' meeting last week, all banks were advised to bring down their spread below 5 percent.

Chief executives of all banks attended the meeting, presided over by Governor Atiur Rahman.

A central bank official said, due to an unhealthy competition, some banks are giving higher interest on deposit, and as a result, the rate of interest on credit is going up.

In the meeting, the BB placed a report on the rate of interest on credit and deposit.

The report said the upper cap of the rate of interest on credit was withdrawn earlier. It resulted in an upward trend in the rate of interest on credit and deposit in the banking sector.

The BB official said the spread in the private and foreign banks is higher than that in other banks.

The central bank on several occasions has warned a number of banks that were offering higher interest on deposit, said the official.

A bank was fined under the Banking Company Act for offering higher interest than its announced rate, said the report.

But even after that the bank continued offering higher interest.

The BB report said, due to the higher rates of interest, credit flow into small and medium enterprises is being hindered.

Some weak banks are hampering the healthy competition in the banking sector, said the managing director of a private commercial bank.

These banks resort to various ill practices to attract depositors, the official said, requesting not to be named. "As a result, other banks have to increase their rate of interest as well."

Another official of a private bank said, if the rate of interest on deposit could be kept low, the rate of interest on credit will also remain low and in turn the spread will come down.

He said the central bank should strengthen monitoring so that banks do not go for any unhealthy competition.

News: The Daily Star/Bangladesh/20-Sep-12