The World Bank warned developing countries on Wednesday to prepare for the "real" risk that an escalation in the euro area debt crisis could tip the world into a slump on a par with the global downturn in 2008/09.

In a report sharply cutting its world economic growth expectations, the World Bank said Europe was probably already in recession. If the euro area debt crisis deepened, global economic forecasts would be significantly lower.

"The sovereign debt crisis in the euro zone appears to be contained," Justin Lin, the chief economist for the World Bank, told reporters in Beijing on Wednesday.

"However, the risk of a global freezing-up of the markets and as well as a global crisis similar to what happened in September 2008 are real."

The World Bank predicted world economic growth of 2.5 percent in 2012 and 3.1 percent in 2013, well below the 3.6 percent growth for each year projected in June.

"We think it is now important to think through not only slower growth but sharp deteriorations, as a prudent measure," said Hans Timmer, director of development prospects at the bank.

The World Bank said if the euro area debt crisis escalates, global growth would be about 4 percentage points lower.

It forecast high-income economies would expand just 1.4 percent in 2012 as the euro area shrinks 0.3 percent, sharp downward revisions from growth forecasts last June of 2.7 percent and 1.8 percent, respectively.

It cut its forecast for growth in developing economies to 5.4 percent for 2012 from its previous forecast of 6.2 percent, saying expansion in Brazil and India and to a lesser extent Russia, South Africa and Turkey, had slowed already.

It saw a slight pick up in growth in developing economies in 2013 to 6 percent. But the report said threats to growth are still rising, suggesting the outlook remained highly uncertain.

The Daily Star/Bangladesh/ 19th Jan 2012

ONE Bank Limited signed an agreement with Bangladesh Bank (BB) under 'Investment Promotion and Financing Facility (IPFF)' at Bangladesh Bank’s head office recently.

Under the deal, ONE Bank Limited will enjoy financing facility from the World Bank, administered by BB, for extending credit facilities to infrastructural projects, said a press release.

Farman R Chowdhury, managing director of ONE Bank and SK Sur Chowdhury, executive director of Bangladesh Bank signed the deal on behalf of their respective sides.

ONE Bank’s deputy managing director Johora Bebe, senior executive vice president (SEVP) Rozina Aliya Ahmed, executive vice president (EVP) Shabbir Ahmed, vice president for syndication and structured finance unit Md Abu Saleh, and joint director Husne Ara Shikha and deputy director of IPFF cell of BB Goutam Kumar Ghosh, among others, were also present.

The Daily Sun/Bangladesh/ 18th Jan 2012

Badiul Alam, additional managing director of National Bank Limited distributes certificates among the participants of a training course in the city recently.

A three-day training course on ‘Regulations in Foreign Exchange and Foreign Trade’ for foreign exchange officers of National Bank Limited concluded in the city recently.

A total of 30 foreign exchange desk officers from different branches of the Bank attended the training course, said a press release.

Badiul Alam, additional managing director of NBL distributed certificates among the participants of the course in the concluding ceremony.

Md. Majibur Rahman, principal and Zahir Uddin Mohd. Babar, senior faculty member of National Bank Training Institute were present, among others at the function.

The Daily Sun/Bangladesh/ 18th Jan 2012

Mohammad Abdul Mannan, managing director of Islami Bank Bangladesh Limited, presides over the annual business development conference of the Bank in the city yesterday.

Islami Bank Bangladesh Limited (IBBL) arranged its annual business development conference in the city yesterday.

Mohammad Abdul Mannan, managing director of the Bank, presided over the conference, said a press release.

Dr AB Mirza Azizul Islam, former finance advisor of a caretaker government, made a speech on ‘Challenges in 2012 in the field of financial sector’ on the second day of the conference.

Prof Mohammed Nazrul Islam, Humayun Bokhteyar, ACPA, FCA and professor Dr NRM Borhan Uddin, directors, Mohd Shamsul Haque, Md Habibur Rahman, Md Nurul Islam, Muhammad Abul Bashar, SMA Saleh and Md Habibur Rahman Bhuiyan, FCA, deputy managing directors of the Bank, top executives, zonal heads and 266 branch managers of the Bank, were also present on the occasion.

The Daily Sun/Bangladesh/ 18th Jan 2012

Sheikh Abdul Hai Bacchu, chairman of BASIC Bank, inaugurates a new branch of the Bank at Banani in the city yesterday.

BASIC Bank has opened its 46th branch at Banani in the city yesterday.

Sheikh Abdul Hai Bacchu, chairman of the Bank, inaugurated the branch while Kazi Fakrul Islam, managing director, presided over the inaugural function, said a press release.

While inaugurating the branch, Sheikh Abdul Hai Bacchu said it is not possible to achieve the target for the country’s economical development without spreading banking services to rural areas.

To accelerate the country’s economical growth, BASIC Bank has taken an initiative to open at least one branch in every district across the country, he said.

Jahangir Akand Selim, Sree Jukta Shuvashis Basu, directors of the bank, Prof Dr. Abu Yousuf Md Abdullah, educationist and business person and other high officials of the Bank were also present at the function.

The Daily Sun/Bangladesh/ 18th Jan 2012