BERLIN: The International Monetary Fund has cut its global growth forecasts for this year and 2013 and called on politicians in the eurozone and the US to take “decisive” steps to restore confidence, a German newspaper said yesterday.

Citing excerpts from the IMF’s World Economic Outlook to be released early next week, the Handelsblatt business daily said that the Washington- based body predicted world economic growth of 3.3 percent in 2012 and 3.6 percent in 2013. In July, the IMF issued forecasts of 3.5 percent and 3.9 percent, respectively.

The German-language paper quoted the report as saying that the “further cooling of growth in the world economy this year and next goes along with a clear increase in downward risks.”

News: The Daily Sun/Bangladesh/7th-Oct-12

NEW DELHI: The World Bank yesterday offered India a $500 million loan aimed at improving access to secondary education and enhancing its quality, a statement said.

The government plans to use the funds to construct 11,000 new secondary schools and repair 60,000 existing ones, while upgrading 44,000 primary schools into secondary schools.

The major focus would be on “quality of education... the country needs its young people to get good quality secondary education”, said Onno Ruhl, the World Bank’s country director for India.

While signing the agreement, an Indian government official said secondary education needs “greater attention” because of a poor enrolment rate and low standards of education in schools.

News: The Daily Sun/Bangladesh/7th-Oct-12

YANGON: The Central Bank of Myanmar has denied rumors about the instability of private banks in the country which has created some panic among savers, official media reported yesterday.

“They are mere rumors aired by those with ill will to harm the interest of banks which are not true,” an announcement of the Central Bank of Myanmar was quoted by the New Light of Myanmar as saying.

“Private banks are operating in line with banking procedures and rules and regulations under the systematic management of the Central Bank of Myanmar and thus, citizens can trust all the private banks,” the announcement added.

There is a total of 19 private banks and four state-owned banks in Myanmar.

Meanwhile, Myanmar has allowed the setting up of public companies in a bid to shape the capital market in the development of market economy.

Eleven authorized private banks in Myanmar started from July to admit opening of foreign currency accounts with the public in U.S. dollar, euro and Singapore dollar as well as FEC (foreign exchange certificate).

Previously, the only two state banks were allowed to undertake such foreign currency dealing services. Aimed at stabilizing the exchange rate of foreign currency and ensure emergence of foreign exchange market in the country, the Central Bank of Myanmar has allowed the 11 Myanmar private banks to trade the three foreign hard currencies.

There are also 20 foreign bank representative offices in Myanmar including those from Singapore, Bangladesh, China, France, Japan, Malaysia, Netherlands, Thailand, Cambodia, Brunei, Vietnam, South Korea, the United States and the United Kingdom

News: The Daily Sun/Bangladesh/7th-Oct-12

The 131st meeting of the Board of Audit Committee of Shahjalal Islami Bank Limited was held at the Bank’s head office in Dhaka recently.

Alhaj Syed Nurul Arefeen, Chairman of the Bank presided over the meeting, said a press release Wednesday.

Among others, Alhaj Khandoker Sakib Ahmed, Vice Chairman of the board of directors, Alhaj Abdul Halim, Managing Director, Md. Abdur Rahman Sarker, Additional Managing Director, Md. Mukhter Hossain, Deputy Managing Directors Md. Abdul Jabber Chowdhury attended the meeting.

News: The Daily Sun/Bangladesh/7th-Oct-12

Bangladesh Bank will release Tk 200 billion before two big religious festivals – Eid-ul-Azha and Durga Puja – to prevent volatility on the call money market by increasing cash flow to the banks.

Of the amount, Tk 80 billion are newly printed notes while the rest Tk 120 billion will replace old and mutilated notes, said central bank sources.

BB Governor Dr Atiur Rahman assured that the call money rate before Durga Puja and Eid-ul-Azha will remain stable as the central bank has taken initiatives to ensure adequate supply of cash.

“I hope the market will remain stable this year,” he said while speaking at a seminar in the city Saturday.

The central bank sources claimed that BB has a reserve of Tk 230 billion cash against the banks’ total demand of Tk 190 billion this year.

On the occasions of Eid-ul-Azha and Durga Puja, the demand for cash usually gets increased every year.

Hindus’ Durga Puja will be held from 15th to 24th October while Muslims’ Eid-ul-Azha is likely to be observed on 26th October depending on moon sight.

This year, the central bank has received a demand of Tk 190 billion cash from the country’s banks to meet the hectic rush of clients before the festivals.

As the demand for cash gets intensified before festivals, the call money market faces supply crunch and becomes volatile, leading the interest rates to go high, said a senior BB official.

In 2010, the call money rate unusually skyrockets to 175 percent before Eid-ul-Azha.

After that, the country’s call money rate remains relatively stable as the central bank proactively interferes to maintain sufficient supply of local currency.

Before last Eid-ul-Fitr in August, the call money market was almost calm as the central bank supplied Tk 170 billion to the banks.

Over the last couple of days, the inter-bank call money rate ranges between 7 and 9 percent. The BB data shows the weighted average call money rate on last Thursday was 7.46 percent.

News: The Daily Sun/Bangladesh/7th-Oct-12