Karmasangstan Bank has organised a view exchange meeting with the high officials of the bank at a city hotel recently.

M Maniruzzaman Khandaker, Chairman, Board of Directors of the bank presided over the meeting, said a press release.

Among others, representatives of finance ministry, directors of Board of Directors of Karmasangstan Bank, chief executives of 13 banks and general managers of the bank attended the function.

The Daily Sun/Bangladesh/ 19th Feb 2012

Bank Asia has provided higher studies scholarship to 11 insolvent meritorious students of Lohagara Upazila of Chittagong district.

Md Mehmood Husain, President and Managing Director of the bsia, handed over the scholarship money to the students at a function held a auditorium on Saturday, said a press release.

Deputy Managing Director of the Bank Mohammed Roshangir, Executive Vice President and Zonal Head Swapan Dasgupta and Lohagara Upazila Chairman Ziaul Huq Babul, Vice Chairman Alhaj Shafiq Uddin were present.

A large number of people including students, teachers, journalists, businessmen and local elite attended the function.

The Daily Sun/Bangladesh/ 19th Feb 2012

The possibility about enhancement of the government's borrowing from the banking system, beyond its original budgetary target, has emerged as a major irritant during the discussions with the International Monetary Fund (IMF), clouding the prospects for approval of a US$1.0 billion support under the Extended Credit Facility (ECF) of the Fund.

"The government informed the visiting IMF mission about its willingness to raise bank borrowing up to Tk 257 billion for the fiscal year (FY) 2011-2012 exceeding its original budgetary target at Tk 189.57 billion, to finance its fiscal deficit," a senior official, who is closely involved in the negotiations with the ECF for ECF funding, informed the FE.

The budgetary target for government's borrowing from the banking system was originally set at an aggregate level of Tk 189.57 billion through issuing treasury bills (T-bills) and bonds, for FY12.

"The IMF mission which has just completed its negotiations in Dhaka with the authorities concerned will submit a report to their headquarters in Washington, apprising the latter of the country's latest overall economic situation. The report will be considered by the IMF board of directors in its next meeting for deciding on Bangladesh's request for ECF support," another official said.

The government's net borrowing from banking system stood at Tk 156.36 billion so far until February 14, 2012, in fiscal '11-12 as against Tk 19.64 billion during the same period of fiscal '10-11, according to the central bank statistics.

"We've fulfilled most of the conditions, set by the IMF for approval of the ECF support to Bangladesh," the official said in response to a query.

The IMF earlier set 16 conditions, including increase of fuel prices, withdrawal of the cap on the lending rates and raising the interest rate on repurchase agreement (REPO).

The IMF team from Washington visited Dhaka during the second week of this month. The Bangladesh government will need to fulfill the conditions under the agreed commitments to avail itself of the IMF soft loan facility, sources said.

"With timely progress on these and other agreed commitments, the Bangladesh authorities expect to reach an ad referendum agreement with the IMF on an ECF arrangement in the near future," the IMF said in a statement from Washington DC on Wednesday.

"Much focus was placed on measures needed to address fiscal pressures, which stem mainly from rising fuel imports and associated subsidy costs, and to move forward on a new value-added tax (VAT) law, as a key plank of the reform program," it noted.

David Cowen, head of the IMF mission to Bangladesh, said in the statement that constructive discussions were held with the Bangladesh authorities on an economic reform programme for which they are seeking support under the ECF.

In this context, discussions centered on the authorities' plans to undertake sustained macroeconomic stabilization measures and supportive structural reforms aimed at reducing external and fiscal imbalances, rebuilding a foreign reserve buffer, and putting Bangladesh on a higher sustained growth path, according to the statement.

"In support, the authorities have taken a number of upfront measures to address macroeconomic pressures currently confronting Bangladesh. Foremost, greater exchange rate and interest rate flexibility is being allowed, helping to absorb external pressures and transmit necessary monetary policy tightening, in line with achieving program objectives," the IMF said.

Discussions also centered on adopting an appropriately restrained fiscal policy, ensuring a continued sound debt management strategy, and undertaking growth-critical reforms in tax policy and administration, public financial management, the banking and financial sectors, and trade and investment policies, it added.

The government had sought the credit to improve the country's overall balance of payments (BoP) situation which entered the negative territory in fiscal year (FY) 2010-2011 after a decade due to widening trade gap, lower growth of remittances and deficit balance in the financial account.

The BoP has recorded a deficit of $998 million during the July-December period of the FY12 from the deficit of $268 million in the corresponding period in the previous fiscal, according to the central bank statistics.

Meanwhile, the government has already formed a six-member committee to finalise the draft VAT law. The committee is expected to give its report at the earliest for enhancement of a new piece of legislation by Jatiya Sangsad (JS). The proposed law is expected to be placed before the JS (parliament) by the middle of June 2012.

Under the earlier agreed commitments, the amendment of the existing VAT law is one of the major conditions under a time-based implementation framework for approval and disbursement of ECF fund by the IMF in tranches

Financial Express/Bangladesh/ 17th Feb 2012

Bangladesh Bank (BB) governor Dr Atiur Rahman said the central bank is working to ensure safe and low-cost monetary transaction by expansion of mobile banking services across the country.Dr Atiur said this while inaugurating the mobile banking services of Mercantile Bank Ltd on Thursday.

The BB governor said the central bank has given approval to 17 banks till February 16, of which 8 banks have already started mobile banking activities through various branches in cooperation with mobile operators' outlet.

Under the mobile banking system, a sender would simply need to deposit money with a bank branch, which has monetary transaction system via mobile, for sending money to a recipient anywhere in the urban or rural areas. The recipient will receive a SMS (Short Message Service) text regarding withdrawal of money from a nearby bank or a mobile operator's outlet by showing the SMS.

"By expansion of mobile banking, monetary flow to the rural areas would increase that would help reducing the discrimination in monetary distribution among people of urban-rural areas. It is safe and low-cost," Atiur said.

He said the central bank has issued a circular regarding the mobile banking that clarifies the rules, provisions and empowered banks of legal authorities for monetary transaction.

The governor said BB has set up an automated clearing house in its headquarters under Bangladesh Electronic Fund Transfer Network to facilitate all the online banking services.

He said the services customers have been enjoying under online and mobile payment system are delivery of remittance, disbursement of salaries, government allowances for designated clusters of people, monthly pension, utility bill deposition and payment of bills for shopping.

The inaugural function was presided over by Mercantile Bank chairman Abdul Jalil, MP. Among others, Support To Digital Bangladesh's project director (PD) Nazrul Islam Khan, PD of the One Household: One Farm project Prosnato Kumar Roy, vice-chairman of the Bank Morshed Alam and the Bank's other high officials were present.

Mercantile Bank officials said primarily the Bank would provide mobile banking services at 788 unions under nine districts through Union Information Centres (UICs). Meanwhile, the Bank has signed contact with the managements of 138 UICs.

The Independent/Bangladesh/ 17th Feb 2012

In the wake of widespread criticisms on high bank interest rates, finance minister AMA Muhith on Thursday urged the bankers to come up with more patriotism and flexibility to facilitate the country’s industrial progress. “Had they (bankers) shown patriotism, there wouldn’t have had frequent changes in the bank interest rates,” he said while addressing the inaugural programme of the 7th International Plastic Fair 2012 held at the Bangabandhu International Conference Centre.

The four-day fair has been organised by the Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA) and Chan Chao International Company Limited, Taiwan, aiming to attract international buyers and make local companies familiar with new technologies.

President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) AK Azad spoke as special guest at the programme presided over by BPGMEA president Shamim Ahmed.

FBCCI 1st vice -president and fair organising committee convenor Md Jashim Uddin also spoke on the occasion. BPGMEA general secretary Iqbal Hossain gave the vote of thanks.

Speaking as the chief guest, the finance minister said although the government has no right to interfere in this issue of bank interest, sometimes it has to do as it is a free market economy. “We often interfere in public interest, but we have no moral rights as it belongs to those who operate the banks.”

As the ‘Commanding Heights of the Economy’, financial institutions need to show much more patriotism, Muhith observed.
Responding to the demand for setting up a plastic industrial estate, he said the government would consider the demand and consult it with the Industries Ministry.

The Independent/Bangladesh/ 17th Feb 2012