The International Monetary Fund (IMF) will not release the second instalment of its $1-billion credit to Bangladesh this November if the country fails to implement conditions on VAT and banking laws.

Finance ministry officials said the lender might delay the disbursement of $141 million if the government does not pass the VAT Act and Banking Companies Act in parliament next month, incorporating its recommendations.

The lender made its stance clear during a meeting between AMA Muhith, the finance minister, and Naoyuki Shinohara, a deputy managing director of the IMF, at Imperial Hotel in Tokyo.

In response, Muhith said the government would incorporate the IMF recommendations in the two Acts before they are placed in parliament for passage, according to officials who were present at the meeting.

The minister is now in the Japanese capital to attend the semi-annual meetings of the IMF.

In the meeting, Muhith also requested the IMF to waive a condition about the exposure limit of commercial banks in the stockmarket.

He sought concession from the IMF in keeping the bank's exposure limit to the stockmarket at 40 percent of their capitals. The IMF earlier asked the government to keep the exposure limit of a bank at 25 percent of its total capital.

The existing exposure limit of a bank is 10 percent of its deposits. An IMF mission, which visited Bangladesh last month, also conveyed the same message to the government as some of the major conditions were not met yet.

According to officials, the mission found major differences in the draft of the VAT law amendment proposal given to them and the one placed in parliament. They expressed serious concern about it.

A finance ministry official said the original draft to the amendment kept VAT at 15 percent in all stages of value addition but the rate was 5 percent in some cases in the final proposal.

The IMF also objected to the planned VAT exemption to different sectors for public interest.

In case of the Banking Companies Act, the lender wanted the government to cut the authority of the Banking Division and give more power to Bangladesh Bank.

The lender has approved $987 million for Bangladesh to help it overcome macroeconomic pressures and build a buffer reserve. The country received one of the seven instalments last year.

News: The Daily Star/Bangladesh/11th-Oct-12

Country’s first real estate developer building technology and ideas (bti) and ICB Islamic Bank, signed a corporate agreement with a view to improve the services provided to the employees and the clientele of both the organisations, says a press release.

Ashique Un Nabi, executive director, marketing of bti, and Rahat Masood, head of consumer products of ICB Islamic Bank, signed the agreement in the presence of bti’s managing director and ICB’s managing director, at bti celebration point.

The signing of this contract further strengthens the ties between these two leading companies.
Designed to enable a reciprocal relationship between bti and ICB Bank, the corporations aim to aid each other in promoting their products and adding to the welfare of their customers and personnel.

News: The Daily Independent/Bangladesh/10th-Oct-12

Manjum Ali, CEO of NCCB Securities and Financial Services Limited and Mirza Elias Uddin Ahmed, CEO of Jamuna Bank Capital Management Limited, seen exchange documents after signing an agreement in Dhaka recently.

NCCB Securities and Financial Services Limited signed an agreement with Jamuna Bank Capital Management Limited (JBCML) on panel broker agreement recently.

Mohammed Nurul Amin, Managing Director and CEO of NCC Bank Limited attended the signing ceremony as chief guest, said a press release Tuesday.

Manjum Ali, CEO of NCCB Securities and Financial Services Limited and Mirza Elias Uddin Ahmed, CEO of Jamuna Bank Capital Management Limited signed the agreement on behalf of their respective organisations in Dhaka recently.

Consultant AK Md. Siddique, Deputy Managing Director TM Faruque Chowdhury of NCC Bank were present along with other senior executives of both the organizations.

Under the agreement, clients of Jamuna Bank Capital Management can do their share trading through NCCB Securities and Financial Services Limited.

News: The Daily Sun/Bangladesh/10th-Oct-12

Al-hajj Nasiruddin, Chairman, Muhammed Ali, Managing Director of Social Islami Bank Limited, along with senior executives pose for photographs with the newly-recruited probationary officers of the bank after Valediction Ceremony of Probationary Officers Foundation Training Course at the corporate office in Dhaka recently.

Social Islami Bank Limited (SIBL) opened its 79th branch at Demra in Dhaka recently.

Abdul Awal Patwary, former chairman of the bank, formally inaugurated the branch as the chief guest, said a press release.

Md Ali, Managing Director of SIBL, presided over the programme while Md Mohashin Miah, Deputy Managing Director, Managers of city branches, and customer of the bank attended the function.

News: The Daily Sun/Bangladesh/10th-Oct-12

Alhaj Anwer Hossain Khan, Chairman of Shahjalal Islami Bank Limited, inaugurates a branch of the Bank at Malibagh Chowdurypara in Dhaka Monday.

Shahjalal Islami Bank Limited (SJIBL) opened its 75th branch at Malibagh Chowdury-para in the city Monday.

Alhaj Anwer Hossain Khan, Chairman of the Board of Directors of the Bank, formally inaugurated the branch and ATM booth as the chief guest, said a press release. In his speech, Anwer Hossain Khan said, "The Bank has been providing better services to its customers since 2001."

Md Abdur Rahman Sarker detailed the deposits and investment schemes of the Bank.

News: The Daily Sun/Bangladesh/10th-Oct-12