Banking
BD seeks $1.0b from AIIB for six projects
Bangladesh has sought extended financial support from the Asian Infrastructure Investment Bank (AIIB) for its six projects costing more than US$1.0 billion, officials said Wednesday.
A two-member Bangladesh delegation, headed by Economic Relations Division (ERD) Secretary Kazi Shofiqul Azam, will participate at the 2nd annual meeting of the AIIB, to be held in Jeju Island of South Korea on June 16-18.
"We will participate in the annual meeting of the AIIB. On the sideline of the meeting, we will also meet its Vice President and some other executives. We will request them to expedite its financial support to Bangladesh," the ERD Secretary told the FE.
Kazi Shofiqul Azam said Bangladesh had already sent the list of six projects mostly from the power sector for getting more than $1.0 billion financial support from the AIIB.
"We are waiting for approval of the Bank's board to receive the loan support," Mr Azam added.
According to officials, the six projects are mostly from the Power Division while one is from the Bridges Division.
Meanwhile, the AIIB approved two loans for two projects in Bangladesh in June last year and in March this year.
On June 24 last year, the bank approved the first loan of $165 million for the Distribution System Upgrade and Expansion Project.
The loan is being utilised by the Bangladesh Rural Electrification Board (BREB) and the Dhaka Electric Supply Company Limited (DESCO) for upgrading their distribution systems.
The second loan worth $60 million is for Bangladesh's Natural Gas Infrastructure and Efficiency Improvement Project.
The state-owned Bangladesh Gas Fields Company Limited (BGFCL) and the Gas Transmission Company Limited (GTCL) will develop the gas supply system with the loan. Bangladesh joined the AIIB from its inception in 2016. The number of its current members is 57. Another 13 are expected to join the bank soon.
The ERD Secretary said the AIIB is a new option for Bangladesh to receive more external financial support for development of the country's infrastructure and cut hunger.
Usually, the AIIB provides the LIBOR (London Based Inter Bank Offered Rate)-based loan for its member-countries with maturity of 25 years.
Currently, the World Bank is the largest multilateral lender, followed by the Asian Development Bank while Japan is the biggest bilateral donor for Bangladesh.
Muhith hints at changing excise duty on bank balance
Finance Minister AMA Muhith hinted Wednesday at possible changes to the proposed hike in excise duty on bank-account balance that triggered widespread criticism.
"This is a budget proposal. I told it earlier that the issue will be discussed at the parliament and finalised then," he told newsmen after a meeting of the cabinet committee on public procurement at Bangladesh Secretariat.
The minister said realising excise duty on bank-account balance was not a new addition this time. "Whatever you said -- excise duty or anything -- had existed there for a long period."
But, he added, now people have started talking about it since the rate is increasing.
"You have started shouting over the excise duty as if it is something new. But, it's nothing new. It is the question of increasing rate," said the finance minister, who has proposed the increase in the duty on bank-account balance.
"So, if there are changes, that will be in rate," he said.
Placing next fiscal year's budget in parliament on June 01 the minister proposed to raise excise duty to Tk 800 from Tk 500 a year for a bank account having balance over Tk 0.1 million.
The proposal drew flak from middle-and lower-middle-income group of people as well as the economists, who said the move will discourage people from keeping money with the banks.
They said if the increased excise duty was charged, the depositors would get a negative return on the money they keep with the banks.
The finance minister also proposed to raise the excise duty to Tk 2,500 from Tk 1,500 on bank-account balance ranging between Tk 1.0 million and Tk 10 million.
In the past, people having bank balance over Tk 20,000 had to pay Tk 150 as excise duty per annum. However, in the proposed budget balance up to Tk 0.1 million has been exempted from the excise duty.
Apart from common people and economists, the Members of Parliament also sharply reacted to the proposed hike in excise duty. They have debated the issue in parliament almost every day since the budget was placed.
MPs criticises Muhith for proposed cut in savings tools
Meanwhile, bdnews24.com adds: The government and the opposition MPs alike have voiced their dismay at proposed cut in interest rates on savings certificates and increase in excise duties on bank deposits.
The MPs came down on Finance Minister AMA Muhith in parliament on Wednesday and asked him to make decisions cautiously keeping the general elections in mind.
Ruling Awami League MP Tanvir Imam suggested creating substitute mediums of investments before cutting down interest rates on savings certificates.
"We need to value our potential voters of 2018 polls," said Tanvir, son of prime minister's adviser HT Imam.
MPs listen to the proposed national budget for fiscal 2017-18 being presented in parliament on Thursday.
On Jun 2, a day after presenting the national budget for FY2017-18, Muhith announced the interest rate on savings certificates would be lowered by two percent.
The decision will come into force within two months.
Another Awami League MP, Habib-e-Millat, suggested realising taxes from higher income group, not those with low income.
"The minister (Muhith) is bound to explain how the decisions will benefit people. Responsibilities cannot be ignored with words like 'rubbish' or 'shut up'," he said.
Highlighting the deficit in the Tk 4.0 trillion budget, opposition Jatiya Party MP Nurul Islam Milon doubted that it could be implemented.
"NBR (National Board of Revenue) lacks the capacity to collect such a massive amount of revenues. The finance minister is putting all the pressure on the people to make up for the deficits," he said.
"People are not happy with the budget as reported by the media. The positive sides of the budget are hardly being noticed because of these 15 percent VAT and increased excise duties."
Nominees instead of legal heirs to get money after demise of depositors
BB directed all scheduled banks to pay deposited money to the nominee or nominees after the account holder's death
The Bangladesh Bank (BB) has directed all financial institutions to pay deposited money to the nominee or nominees after the death of a single or joint account holders.
The BB gave this directive in a circular issued on Monday, signed by its general manager Md Shah Alam.
According to the circular, the deposited money could be paid to a single or multiple nominees mentioned in the account after the demise of the depositor or depositors. It also said the depositors could choose new nominees in place of the old ones at any time.
As per Section-1 of the Bank Company Act, all single or joint account holders can predetermine who, in case of underage nominees, would be entitled to receive the deposited money, the circular noted.
In an earlier circular on April 19, the BB had
directed all scheduled banks to pay deposited money to the nominee or nominees after the account holder's death. The directive was issued to the managing directors or chief executive officers of all the scheduled banks.
According to sources at the central bank, the BB authorities issued the circulars against a High Court (HC) verdict that had established the right of legal heirs as against that of nominees.
On Aprl 3 last year, an HC bench had ruled that after the death of a person, the money deposited in his/her account(s) would go to his/her heirs instead of nominees.
In its verdict, the HC bench, comprising Justice Naima Haider and Justice Khizir Ahmed Choudhury, said the nominee was only a trustee and agent as per the law.
The deposited money will have to be divided among the depositor's legal heirs following the Mohammedan law, the court added.
After the verdict, senior Supreme Court lawyer advocate MI Farooqui, counsel for the petitioners, told The Independent that nominees were not eventual owners of a depositor's money. The deposited money must be divided among the legal heirs as per the provisions of the Mohammedan law, he said.
Monjurul Haq Chowdhury and his two sisters moved the High Court, seeking review of the lower court’s rejection of their application that sought succession certificates and the favour given to their stepmother Bilkis Ara Begum as the lone inheritor of Tk 30 lakh in the bank account of their late father Md Shahidul Haq Chowdhury.
Shahidul Haq Chowdhury, former Bangladesh Bank (BB) deputy director, had died on September 23, 2013. He made his second wife, Bilkis, the nominee of his account at the BB’s Motijheel office in which he had deposited savings certificates worth Tk 30 lakh.
The HC directed the BB to distribute the money of the deceased among his legal heirs on the basis of the succession certificates to be issued by the lower court.
M.A. Wadud, AMD of National Bank Limited and Ikram Farazy, Managing Director and CEO of NEC Money Transfer Ltd. UK , sign an agreement at the bank's head office recently. DMDs of the bank Abdus Sobhan Khan, Shah Syed Abdul Bari, Md. Farid Uddin Ahmed and
M.A. Wadud, AMD of National Bank Limited and Ikram Farazy, Managing Director and CEO of NEC Money Transfer Ltd. UK , sign an agreement at the bank\'s head office recently. DMDs of the bank Abdus Sobhan Khan, Shah Syed Abdul Bari, Md. Farid Uddin Ahmed and
Md. Abdul Hamid Miah, Managing Director of Islami Bank Bangladesh Limited, addressing a discussion on 'Role of Ramzan in Attaining Taqwa' and Iftar Mahfil at the bank's head office in the city on Tuesday. Dr. Hasan Mohd. Moinuddin, Member of Shari`ah Supe
Md. Abdul Hamid Miah, Managing Director of Islami Bank Bangladesh Limited, addressing a discussion on \'Role of Ramzan in Attaining Taqwa\' and Iftar Mahfil at the bank\'s head office in the city on Tuesday. Dr. Hasan Mohd. Moinuddin, Member of Shari`ah S