The Asian Development Bank (ADB) is to help Bangladesh rollout planned transport projects to accelerate growth and stimulate economic activity across South Asia and beyond.

The ADB Board of Directors already approved a technical assistance of $23 million for the Subregional Transport Project Preparatory Facility, which will be used to hasten the passage of road and rail projects earmarked as priorities for the development of regional transport projects.

The government of Bangladesh will provide an additional $4.59 million for a total project cost of almost $28 million. The Roads and Highways Department (RHD) and Bangladesh Railway (BR) will be the executing agencies for the project, which is due for completion in June 2013.

Newly appointed Country Director of ADB’s Bangladesh Resident Mission Teresa Kho will meet Railways Minister Suranjit Sengupta at the latter’s Secretariat office today to discuss the issue, according to the ministry. 

The Daily Sun/Bangladesh/ 8th March 2012

Bangladesh Bank Governor Dr Atiur Rahman said bank notes are not only the medium of barter but also reflect the country’s heritage and culture.

He said almost every country in the world shows the portraits of their fathers of the nation on currencies as a means of showing honour and gratitude to the national leaders

Atiur was addressing a ceremony organised by Bangladesh Bank to formally release three new bank notes of Tk 10, Tk 20 and Tk 50 imprinted with the portrait of Father of the Nation Bangabandhu Sheikh Mujibur Rahman at the BB conference room on Wednesday.

Hours after releasing the new notes, the central bank however has withdrawn the new Tk 50 note as a spelling mistake of Shilpacharya Zainul Abedin on it was identified.

We have chosen March 7 to release these new notes considering the historic importance of the day, the BB governor said in his speech.

He also informed that metallic coins worth Tk 5 each, imprinted with the portrait of Bangabandhu, would also be circulated in the market soon.

The central bank primarily released a total of 1 million pieces of each denomination. Governor of Bangladesh Bank Dr Atiur Rahman signed the notes.

Eminent artist Mustafa Monwar, Director General of Security Printing Corporation (Bangladesh) Ltd (SPCBL) Ziauddin Ahmed and deputy governors of Bangladesh Bank, among others, also spoke on the occasion.

Following the official launching of the new notes, the BB started distributing the notes at its headquarters yesterday. The notes will be available at all branches of BB and commercial banks across the country from now on.
All the metallic coins and paper notes, running currently, will also exist in the market.

While addressing the ceremony, Mustafa Monwar said the new notes contain some special security features, making counterfeiting almost impossible.

He also viewed that the portrait of Bangabandhu is the symbol of country’s independence while agriculture still remains the base of the country’s economy.

So the portrait of Bangabandhu along with the illustration of agriculture have made an appropriate combination, he added.

The Daily Sun/Bangladesh/ 8th March 2012

Bangladesh Bank yesterday released three banknotes of Tk 10, Tk 20 and Tk 50 denominations with the image of Bangabandhu Sheikh Mujibur Rahman to mark the historic 7th March. 

The Daily Star/Bangladesh/ 8th March 2012

Finance Minister AMA Muhith yesterday said separate pay scales for the staff of Bangladesh Bank and state-owned commercial banks would be finalised by June.

The assurance came after long dithering over the issue.
“I am guilty for it (the delay),” Muhith told reporters at his secretariat office after a meeting with officials of the state banks.

The central bank has made a proposal on the separate pay scale, while the state banks have prepared another. The committee formed by the government has prepared yet another proposal, the minister said. A structure will be finalised based on the three proposals, he said.

During the previous BNP rule, an initiative was taken to give a separate pay scale for the staff of the central bank and state banks under a banking sector reform programme.

Dr Fakhruddin Ahmed, the then governor of the central bank, pursued the government for long, without any success. Even when he became the chief adviser of caretaker government, his attempt failed due to strong opposition from government officials.

After the present government came to power, Muhith pledged that a separate pay scale would be in place, following persuasion by Bangladesh Bank Governor Atiur Rahman.

A committee led by the cabinet secretary scrutinised the two proposals made by the central bank and the state banks and it has been with the finance ministry for all this time.

At yesterday's meeting with the chairmen and the managing directors of the state banks, Muhith had a long discussion on the latest performance and problems of the banks. The governor of BB was also present.

The state banks presented the issue of huge outstanding loans of government entities, including Bangladesh Petroleum Corporation (BPC).

According to finance ministry statistics, the government institutions outstanding loans to the state banks stood at Tk 30,939 crore up to January 2012. Of the amount, BPC alone owes more than Tk 17,000 crore.

Muhith said a number of decisions were taken in the meeting about repayment of the loans. The government institutions will have to provide the banks with clear repayment schedules when opening letters of credit.

The minister said the institutions would continue to deposit foreign currency to the banks' accounts on schedule.

According to an existing policy, the government institutions will deposit 75 percent of their funds to state commercial banks but many institutions have not been going by the rule, he said.
“The policy will be strictly reinforced.”

Muhith said the government institutions have also been increasing the rate of interest on deposits tactfully. It will be stopped, he said.

The Daily Star/Bangladesh/ 8th March 2012

The 8th meeting of Bank Asia Shariah Council was held at Bank's Corporate Office at Purana Paltan in the capital recently.

Mr. M. Azizul Huq, a member of Shariah Council presided over the meeting. Shariah Council members of the Bank -- Mr. Mohammed Lakiotullah, Vice Chairman of Bank Asia, Dr. Muhammad Mustafizur Rahman, Mr. Muhammad Mukhlesur Rahman, Mr. Mohammad Mofazzal Hossain Khan, Mr. M. Fariduddin Ahmed, Mufti Mawlana Abdul Mannan and Dr. Muhammad Harun Rashid attended the program.

Mr. Md. Mehmood Husain, President & Managing Director, Mr. S.M. Khorshed Alam, Deputy Managing Director and Mr. Md. Arfan Ali, Senior Executive Vice President of the Bank were also present in the meeting.

Financial Express/Bangladesh/ 7th March 2012