Austria’s central bank on Friday cut sharply its forecasts for economic growth for 2012 and 2013 because of a “significant” slowdown in many of the eurozone member’s export markets.

For 2012 the Oesterreichische Nationalbank (OeNB) now expects Austria’s gross domestic product to expand by “only” 0.4 percent, down from its previous forecast of 0.9 percent.

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

Despite the strong revival of the Dubai economy, local lenders lure customers and capital with a much more modest tone than before the crisis as they deal stricter financial regulation and consolidation.

Tighter regulations were implemented by the United Arab Emirates (UAE) central bank on lending. Since July 23 this year, the UAE central bank demands from local lender six more forms which have to be filled out if a customer applies for a personal loan, draft or auto loan in order to specify a customer’s credibility and securities in case of a default.

In addition, the central bank governor Sultan Al-Suwaidi pushes the banks to prepare for adapting Basel III standards by 2019. Al- Suwaidi demands from UAE lenders to have a minimum capital requirement of 12 per cent until then which is higher than the 8 per cent required by Basel III.

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

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