Pubali Bank (PBL) and Runner Motors Limited signed a memorandum of understanding (MoU) with a view to supply farm equipment (tractor) to farmers.

The signing ceremony took place at Pubali Bank head office recently, says a press release. B M Shahidul Haque, deputy general manager, Kawran Bazar corporate branch of Pubali Bank Ltd, and Hafizur Rahman Khan, chairman of Runner Group, signed the MoU.

Helal Ahmed Chowdhury, managing director of Pubali Bank Limited, was also present.As per the MoU, a farmer can get loan from PBL on easy terms to buy farm machinery.

The Independent/Bangladesh/ 19th March 2012

Majedur Rahman, additional managing director of AB Bank and Raihan Shamsi CEO of GP, exchange documents of a MoU signed in the city recently.

AB Bank Limited and Grameenphone Limited signed a Memorandum of Understanding (MOU) on utility bill payment service.

Under the MOU, AB Bank branches across the country will offer services to GrameenPhone Limited for payment of their electricity bills, said a press release.

Majedur Rahman, additional managing director of the Bank and Raihan Shamsi CEO of GP exchanged documents of the recently signed MoU on behalf of their respective organisations.

AB Bank's deputy managing director Shamim A Chaudhury, its relationship manager of Islami banking branch and senior vice president ABM Abdus Sattar, GP's director of Corporate Finance and Treasury Md Mainur Rahman Bhuiyan, GM (Payment System) Md Saiful Islam were also present.

The Daily Sun/Bangladesh/ 10th Jan 2012

The Ministry of Finance (MoF) has decided to issue Special Treasury Bond worth Tk 57.32 billion to three state-owned commercial banks (SCBs) -- Sonali, Janata and Agrani -- to clear off the outstanding amount of loans of Bangladesh Petroleum Corporation (BPC) that it owes to the SCBs for importing oil.

Finance Minister AMA Muhith last week approved the issuance of bond in favour of three SCBs, a senior official in the ministry said.

Of Tk 57.32 billion, bond worth Tk 22.14 billion will be issued in favour of Sonali Bank Ltd and Tk 18.13 billion to Janata Bank Ltd. The rest of the amount -- Tk 17.04 billion -- will be issued in favour of Agrani Bank Ltd.

"We are going to issue Special Treasury Bond worth Tk 57.32 billion to three SCBs as the banks opened Letters of Credit (L/Cs) in favour of BPC to import petroleum oil," a top MoF official told the FE on Wednesday.

"The aggregate amount of outstanding liabilities of the BPC to three SCBs stood at Tk 57.32 billion as of June 30 this year," he added.

Chairman of BPC Abubakr Siddique said the large liabilities of the BPC to SCBs have mainly been due to sale of petroleum products by the corporation to the domestic market at prices less than their procurement cost.

"After issuance of bond, the banks will have no problems in opening L/Cs for the BPC," Siddique told the FE on Wednesday.

He said the BPC now incurs loss to the tune of Tk 17.38 for selling per litre of diesel and furnace oil in the local market.

According to the BPC, the corporation will incur an aggregate loss, amounting to Tk 132 billion in the current fiscal year, if the prices of diesel and furnace oil are not increased further.

The bond bears 7.0 per cent rate of interest and can be used by them for meeting their statutory liquidity requirement (SLR) by the BB, said the MoF official.

Officials in the MoF said the decision of issuing bond came after Sonali, Janata and Agrani had repeatedly been seeking fund from the government to address their severe liquidity problems.

Earlier in September last, the MoF issued similar bond in favour of Agrani for an amount of Tk 8.0 billion for the same purpose.

High officials in the SCBs said the BPC has been importing a large quantity of petroleum in recent months, creating fresh pressure on the SCBs to open letters of credit (LCs) with their own resources.

"We have to open LCs for the BPC, but the corporation cannot repay the money as it sells the imported petroleum in the local market at prices lower than their imported cost," a banker said.

He said the banks opt for cash money, instead of bond.

However, officials said the government has dearth of cash flow at present. The government borrowed over Tk 100 billion high-powered money from the Bangladesh Bank through overdraft during the first four months of the current fiscal, they added.

The Special Treasury Bond worth Tk 57.32 billion will be issued in three phases. Of the total amount, bond worth Tk 19 billion will be issued to three banks concerned today (Thursday), a high official in the MoF said.

He said the liability of the BPC to three SCBs, against which bond will be issued, will be considered as part of the government's total subsidy bill.

Source: The Financial Express/ Bangladesh/ 15th Dec 2011

Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Dutch-Bangla Bank Ltd (DBBL) Monday signed a Memorandum of Understanding (MoU) under which the Bank will work as the key sponsor at the upcoming 6th Knit Exposition 2012 in Japan, said a press release.

BKMEA president AKM Selim Osman and Dutch-Bangla Bank managing director KS Tabrej signed the agreement on behalf of their respective organsations at the Bank's head office in the city. BKMEA vice-president (Finance) AH Aslam Sani and other officials of the bank were present.

The release said the association has decided to organise the fair in Tokyo, Japan, scheduled to be held from January 25 to January 27 next for the first time aiming to reduce over dependence on European Union (EU) countries, US and Canada as the prime export market of knitwear items and to diversify the market. The previous five expositions were held in Bangladesh.

Japan imports knitwear products from Bangladesh worth $ 27 billion every year. Besides, Japan has relaxed the rules of origin from three stages to two stages of knitwear items to avail of Japanese GSP facilities. It has created an immense potential to export Bangladeshi knit products to the country, the release added.

The association board of directors and the members will take part in the exhibition where booking of 32 stalls have already been made. Many participants from across the world will participate at the exposition.

Both BKMEA and BGMEA leaders in recent years took an intensified move to diversify the traditional export market of apparel, the country’s lifeline of economy.

“Being the third largest economy of the world, Japan is a very good destination for Bangladeshi products provided we can maintain the quality and shipment time,” one industry source told the FE.

Source: The Financial Express/ Bangladesh/ 14th Dec 2011

Shahjalal Islami Bank Ltd and Money Exchange SA, Spain signed a remittance arrangement recently, says a press release.

Bangladeshi expatriates living in Spain can now send money safely and quickly to the beneficiaries by electronic fund transfer through all of the branches of Shahjalal Islami Bank  in Bangladesh. 

Md Abdur Rahman Sarker, managing director of Shahjalal Islami Bank and Jesus Abio Vilarig, general director of Money Exchange SA, Spain has signed the agreement.

Source: The Independent/ Bangladesh/ 22th Nov 2011