The government on Monday approved Islamic development Bank’s (IDB’s) US$1.2 billion loan proposal to Bangladesh.

Hard term loan committee approved the proposal of the Energy and Mineral Resources Division placed on January 9 last with Finance Minister AMA Muhith is the chair.

Finance Division Secretary Dr Mohammed Tareq, Energy and Mineral Resources Division Additional Secretary Md Abu Taher, BPC Chairman Anwarul Karim and other senior officials were present at the meeting.

Last December, Islamic Development Bank (IDB) assured Bangladesh of providing US$ 1.2 billion for procurement of 5.5 million tonnes of petroleum fuels during this calendar year.

The IDB assurance came in response to Bangladesh’s proposal at a meeting in Jeddah late last year with Islamic Trade and Finance Cooperation (ITFC), a sister concern of IDB.

The IDB assured to provide the loan as the Bangladesh Petroleum Corporation was suffering fund shortage for import of petroleum oil. The BPC has sought Tk 25 billion as a subsidy from the Ministry of Finance to ease its financial crisis.

The government sought nearly USD $2 billion loan support from the IDB for this calendar year, a senior official of the Energy and Mineral Resources Division (EMRD) told daily sun.

“IDB assured us of providing US$ 1.2 billion in response to an appeal for nearly US$ 2 billion,” he said, adding.

News:Daily Sun/Bangladesh/08 Feb 2011

Bangladesh Bank will unveil a commemorative coin today to mark the ICC Cricket World Cup 2011, to be held in the sub-continent this month including Bangladesh.

Finance Minister AMA Muhith, also the chairman of the world cup organising committee, will unveil the Tk 10 silver coin at a function at National Sports Council (NSC) this morning with BB Governor Dr Atiur Rahman in the chair, a BB press release said.

Bangladesh Cricket Board (BCB) president AHM Mustafa Kamal,

State Minister for Youth and Sports Ahad Ali Sarkar, Zahid Ahsan Russel, chairman of the Parliamentary Standing Committee on Youth and Sports, Secretary of the Ministry of Youth and Sports Mahbub Ahmed, BB deputy governor Ziaul Hasan Siddiqui

will also attend the function.

The Germany made coin will have a price tag of Tk 3,000.

The sale of the commemorative coins will start in the capital at 12:00pm at Bangladesh Bank’s head office and all commercial banks.

Other branches of the BB and other commercial banks outside the capital will also sell the coin later.

The round shaped coin will have world cup logo embedded on one side and the World Cup and BB logo on the other.

The coin is made of 925 fine silver (99.9% silver), having a diameter of 38mm and weighing 30 grams.

Bangladesh is a co-host of the sporting event along with India and Sri Lanka.

Eight matches including two quarter finals and the inaugural ceremony will be held in Bangladesh starting from February 17.

News:Daily Sun/Bangladesh/08 Feb 2011

The Eastern Bank Ltd (EBL) distributed blankets among cold heated people in the districts of Lalmonirhat, Nilphamari and Dinajpur, the northern region of Bangladesh recently. A team of the bank comprising Mahbubul Alam Tayab, chief of internal control and compliance department, M A Awal, senior manager, and Md. Shajahan Ali, associate senior manger, distributed the blankets with the help of local administrations of the respective districts.

News:Daily Sun/Bangladesh/08 Feb 2011

A two-day 'Annual Managers Conference-2011' of Pubali Bank Ltd was held in Sylhet recently.

A total of 399 branch managers, regional managers and other senior executives of bank’s head office attended the conference at Rose View Hotel in the district town, said a press release.

Hafiz Ahmed Mazumder MP, chairman of the board of directors of PBL graced the conference as chief guest while Managing Director Helal Ahmed Chowdhury presided over the conference.

Bank’s Vice-Chairman and Director Habibur Rahman, Directors Moniruddin Ahmed, Sk. Wahidur Rahman, Monzurur Rahman, Syed Moazzem Hussain, Ahmed Shafi Chowdhury, M. Faizur Rahman, Muhammed Kabiruzzaman Yaqub, Mrs. Rumana Sharif and Mustafa Shahriar Ahmed, were also present at the conference.

News:Daily Sun/Bangladesh/08 Feb 2011

Finance Minister AMA Muhith said Sunday commercial banks must cut their presence in the stock market gradually since investing in the capital market is not their core business.

"Banks are not supposed to be playing in the stock market and they have to concentrate on expanding business activities through banking", the minister said.

He was speaking as the chief guest at a book launching ceremony titled "Shombhaboner Orthoniti" authored by Mamun Rashid, a banker and economic analyst.

The minister expressed his confidence in market mechanism and supported the functioning of the share market without much intervention while commenting on Sunday's fall of stock market which lost 400 points.

"Don't get panicked by today's market fall, rather let the market go by its own way", the minister said, adding that the government is trying to manage the problem created out of mismanagement.

Muhith also shared his views on various issues, ranging from micro-finance regulation, demutualisation of stock market, reform of taxation, budget implementation and corruption in education and other sectors while commenting on different chapters of the book.

"We'll surely implement the demutualisation of our stock market despite protest from the stock exchange authority and we'll do it within our tenure", he said terming it a major goal of the incumbent government.

Besides, he noted that demutualisation will help achieve the goal of national stock exchange, an idea presented by Mamun Rashid in his book.

While commenting on micro finance regulation, the minister came up with his observation that Microcredit Regulatory Authority (MRA) was doing good job in controlling 'sick' competition among Microfinance Institutions (MFIs) by fixing the ceiling of interest rate.

"Institutionalisation of Grameen Bank was done for ensuring sustainability of this approach, but, unfortunately, borrowers are getting entangled in the 'quicksand of loan", Muhith said, criticising the MFIs.

Earlier, the minister unveiled the book along with other dignitaries, which is a collection of different articles, mostly published in different dailies in 2010. Adviser of former caretaker government Dr. Mirza Azizul Islam was present at the launching as the special guest and vice chancellor of North South University Prof Hafiz G A Siddiqi presided over the function.

Dr. Aziz noted that banks showed collusive behaviour in fixing interest rates charged for loan but got involved in 'ill' competition in collecting deposit.

He also emphasised relying on market forces, good governance in reducing corruption and increased fund flow to education sector while commenting on the book.

He, however, expressed disagreement with the idea of National Stock Market and sought the finance minister's attention to demutualisation of stock market within next three to five years.

Mamun Rashid defended his proposition of a national stock market with his experience of India where it played significant role in stabilising the market.

Anyaprokash published the book which contains articles on different topics including stock market, budget implementation, stock market, microfinance, the incidence of 1/11 and potential of Bangladesh in its economic resilience.

News: The Financialexpress/ Bangladesh/ Feb-07-2011