New World Bank President Jim Yong Kim warned Monday that the eurozone crisis poses a deep threat to the global economy as he launched into his first day leading the development lender. The Korean-American physician, who won a contest against developing country candidates in April to run the bank, said the world's economy "remains highly vulnerable." The World Bank has "an economic and moral imperative to help address risks to global growth, no matter where they emerge," he said.

"A strong global economy benefits all countries; a weak global economy makes all countries vulnerable.
"It is urgent that European countries take all necessary measures to restore stability because their actions will impact growth in all regions of the world.

Kim -- a global health expert who contrasts with the bankers and diplomats that Washington has named to run the bank in the past -- pledged to stick to the mission of helping the poorest countries get on their feet.
He gave no hint of any changes to the work of his predecessor, Robert Zoellick.

"I'm humbled and inspired to take over today as president," Kim said at the doorstep of the Washington-based global development lender Monday morning.
"I can't wait to get started."

"I've spent most of my adult life working in some of the poorest communities in the world."

He said the bank will continue to operate "with innovation, with analytic rigor and with great passion, working in partnership with governments, with civil society organizations, with the private sector, and most importantly with the people living in poverty we aspire to serve."

But it was "a pivotal moment" with the eurozone crisis and economic slowdown in the largest countries impacting small, vulnerable economies around the world.

"I will work with our clients and partners to ensure that we are creating a new economic firewall: one that protects people in developing countries against shocks."

"I know from my work in poor communities around the world that, when a crisis hits, and no safety net is in place, the effects can be devastating."

The Daily Independent/Bangladesh/ 4th July 2012

Inward remittances grew 10.26 percent to $12.85 billion in the year to June 30 from a year ago, according to data from the central bank.

A strong dollar and transfer of money through formal channels helped the country attain good growth of remittance in fiscal 2011-12 despite the global financial crisis, bankers said.

Helal Ahmed Chowdhury, managing director of Pubali Bank, identified three major reasons -- banks' drive, market expansion and anti-money laundering laws -- for a boost in remittances.

“Banks tried to get remittances to meet its demand for foreign currency and to achieve that many banks opened exchange houses abroad,” said Chowdhury whose bank witnessed around 20 percent growth in 2011-12.

A stronger dollar against the taka also helped achieve double-digit growth, Chowdhury said.

Bangladesh had received $2.5 billion in remittances a decade ago which now gets five times more. The country looks for new markets as the Middle East countries are facing political unrest for the past two years.

The Middle East accounts for more than 60 percent of Bangladesh's inward remittances.

Although Bangladesh achieved double-digit growth in remittance in 2011-12, the month-wise inflow shows it has been declining gradually.

In June, the last month of the concluded fiscal year, inward remittances stood at $1.07 billion, down by 7.2 percent from $1.16 billion in May.

The Daily Star/Bangladesh/ 4th July 2012

The International Monetary Fund on Tuesday pared its growth forecast for the US economy and warned that the Obama administration could be slicing the deficit too fast for the weak economy.

It also said the economy was under threat from the pre-programmed "fiscal cliff" combination of sharp spending cuts and tax increases at the year-end, and a worsening of the eurozone crisis.

The IMF estimated 2012 US economic growth at 2.0 percent, down from April's forecast of 2.1 percent, and said even that outlook was at risk from both domestic and international threats.

"It is critical to remove the uncertainty created by the 'fiscal cliff' as well as promptly raise the debt ceiling, pursuing a pace of deficit reduction that does not sap the economic recovery," the fund said in its annual report on the US economy.

The Daily Star/Bangladesh/ 4th July 2012

Dr Arif Dowla, Managing Director of ACI Limited and KS Tabrez, Managing Director of DBBL, exchange documents after signing an agreement at the ACI head office in Dhaka.

Dutch-Bangla Bank Limited signed an agreement with Advanced Chemical Industries Limited on mobile salary payment at the ACI head office in Dhaka.

Dr Arif Dowla, Managing Director of ACI Limited and KS Tabrez, Managing Director of DBBL signed the agreement on behalf of their respective organizations, said a press release.

Abul Kashem Md. Shirin, Deputy Managing Director of DBBL, Mir Mominul Huq, Head of Mobile Banking Division of DBBL and Muallem A Choudhury FCA, Executive Director, Finance Planning and CFO of ACI Limited were also present.

The Daily Sun/Bangladesh/ 4th July 2012

Bangladesh Bank Governor Dr Atiur Rahman (3rd from right) launches ESCAP country studies at a seminar in Dhaka Tuesday.

Bangladesh Bank Governor Dr Atiur Rahman urged the Banks and other financial institutions to consider SME loans as their social responsibility on the way to economic development.

He spoke at a sub-regional seminar styled as ‘Enabling Environment for Integration of SMEs in Global Value Chain’ on Tuesday in the city.

Later, Dr Atiur Rahman launched country studies on Bangladesh, Nepal and Sri Lanka, conducted by ESCAP (United Nations Economic and Social Commission for Asia and the Pacific).

The seminar was jointly organised by ICC Bangladesh, ESCAP and BRAC Bank Limited.

President of ICC Bangladesh Mahbubur Rahman, managing director of BRAC Bank Syed Mahbubur Rahman, representative from Trade and Investment Division of ESCAP Dr Masato Abe and managing director of SME Foundation Syed Rezwanul Kabir, among others, also addressed.

The central bank chief said Bangladesh was less affected by global recession because of its economic inclusiveness, diversification and special emphasis on SMEs and agriculture. He underscored technological development in the SME sector to include global value chain.

“There is no alternative to technological advancement for growth of SMEs.”

Enabling environment and infrastructure development are also essential parts for integration into global value chain, Dr Rahman added.

He said the women entrepreneurs are being provided loans at single digit interest rates currently.

Mahbubur Rahman stressed the development of SME sector to achieve 7.2 per cent growth in the current fiscal and become a middle income country by 2021. He urged the SME Foundation to make sure that their loans are being prudently utilised.

He said the SME Foundation should undertake initiative to ensure market access of non-traditional products so they enter into global value chain.

BRAC Bank MD and CEO Syed Mahbubur Rahman said the bank disbursed 92 percent of US$ 2.2 billion loans to 400,000 SMEs as collateral free credit.

Dr Masato Abe explained the importance of the SMEs’ integration into global value chain as well as its impact on Asian economies.

Chairman of Centre for SME Growth and Development Finance Dr Sailendra Narain, ICCB Vice Presidents Latifur Rahman and Rokeya Afzal Rahman, ICCB Executive Board Member R Maksud Khan and DCCI President Asif Ibrahim also attended the function.

The Daily Sun/Bangladesh/ 4th July 2012