BB governor tells FICCI seminar

Bangladesh represents a resilient sovereign credit story buoyed by high and consistent growth, improving public finances, and an increasingly supportive business environment said Bangladesh Bank (BB) governor Dr Atiur Rahman. Despite numerous external and domestic shocks to the economy, Bangladesh has continued its impressive growth trajectory said the governor while addressing a seminar on ‘Macroeconomy and Investment: Bangladesh Perspectives’ at a city hotel on Sunday.
The seminar was organised by Foreign Investors Chamber of Commerce and Industry (FICCI) with a view to attracting more foreign direct investment in the country.
The governor has underscored the need for some major initiatives to attract FDI such as head of the state level negotiations, alignment of trade and investment related institutions, gradual liberalization of foreign exchange and trade restrictions. Atiur also stressed the need for plot and factory building reservation in EPZs for foreign investors.
Bangladesh is the ideal destination for foreign direct investment due to the low costs of service delivery said the BB chief adding that the government has undertaken initiatives to upgrade the skill of the labour.
The ADB supported Skill for Employment Improvement Programme initiative in which BB SME unit is a partner will make more skilled worker available for the foreign investors, also said the governor.
The recent reforms by the central bank were made to encourage more FDI in the country including enhancement of financing options for foreign owned or controlled companies. Restrictions to access of foreign owned or controlled companies in Bangladesh to term loans in Taka from the local market have been waived, said the governor. Under the new instructions, foreign owned or controlled companies engaged in manufacturing or services output activities for three years or longer in Bangladesh can access Taka term loans from the domestic market regardless of local content in their equity, also added Atiur. Moreover, working capital financing in foreign currency from parent company is also now permissible without prior approval as interest-free loan
The central bank has already removed lock-in period for foreign investment in Treasury Bonds (which have attractive rates). The seminar was also addressed among others by the former FICCI president Syed Ershad Ahmed and the current president of FICCI Rupali Chowdhury.