Md. Shirajul Islam Mollah, Chairman of Prime bank Limited, seen with other directors of the bank at the bank’s ‘managers’ meeting-2012’ at a city hotel in Dhaka.

Prime Bank Limited organised ‘Managers’ Meeting-2012’ at a city hotel in Dhaka.

Md. Ehsan Khasru, Managing Director of the bank presided over the meeting, said a press release Tuesday.

Md. Shirajul Islam Mollah, Chairman of the bank was present as chief guest while former Chairman Azam J Chowdhury, directors of the bank, Md. Shahadat Hossain and Prof. Mohammed Aslam Bhuiyan, Advisor of the bank Ziaul Hassan Siddiqui were present as the special guests.

The main objective of the meeting was to analyse the business progress of the bank, upcoming challenges and ways to resolve them.

The Daily Sun/Bangladesh/ 20th June 2012

The government has appointed two new directors of International Finance and Investment Corporation (IFIC) Bank from its stake.

The Banking Division of the Finance Ministry Tuesday issued a circular in this regard.

As per the circular, Arijeet Chowdhury, Joint Secretary of the Banking Division has been appointed director of IFIC Bank to replace Mahbub Haque Bhuiyan, the existing director of the bank and also Chairman of the Bangladesh Sugar and Food Industries Corporation (BSFIC).

ARM Nazmul Sakib, Additional Secretary of the Finance Division will replace Joint Secretary Mohammad Ali, the other director of the bank.

The government now holds 32.75 percent of the share of IFIC bank.

The Daily Sun/Bangladesh/ 20th June 2012

The banks have a significant opportunity to extend services to an overwhelming number of the country’s three million readymade garment workers so that they can have access to savings and credit products, a study released by The International Finance Corporation (IFC), a member of the World Bank Group, finds.

The study analysed how barriers to access to finance for 86 percent employees of the $-16 billion readymade garment industry can be addressed, said a press release.

The South Asia Enterprise Development Facility, managed by IFC in partnership with the UK Department for International Development and the Norwegian Agency for Development Cooperation, and the Bangladesh Investment Climate Fund, managed by IFC in partnership with the UK Department for International Development and the European Union, carried out the study.

The Daily Sun/Bangladesh/ 20th June 2012

The Executive Committee of the National Economic Council (ECNEC) Monday approved eight development projects involving Tk 30.39 billion.

Prime Minister and ECNEC chair Sheikh Hasina presided over the meeting.

The projects included rural water supply, railway development, water management development, dredging of Pashur channel harbour at Mongla Port, construction or rehabilitation of ferry and pontoons and expansion and development of Chittagong College – Kapasgola road.

Acting Planning Secretary Bhuiyan Shafiqul Islam briefed the journalists about the Ecnec meeting.

He said, of the total cost, Tk 20.96 billion will come as assistance, Tk 8.30 billion from national exchequer and the remaining Tk 1.13 billion will be collected from community sponsor.

For supplying drinking water to arsenic and salinity-hit areas, Tk 6.82 billion will be spent.

The project will be implemented in 33 districts across the country.

Besides, non-piped water supply system will also be established in the areas facing acute problems of salinity, iron and arsenic.

Over 300,000 sanitary latrines will be constructed for the ultra poor people of some selected unions.

For the project, World Bank will provide Tk 5.55 billion as credit and Tk 1.13 billion will come from community sponsorship. Department of Public Health Engineering (DPHE) is scheduled to implement the project by June 2016.

Railway Sector Development Project’ will be implemented to improve regional and sub-regional railway communication system, making it safer and faster mode of travelling.

The implementation cost is set at Tk 3.96 billion, of which, ADB will give Tk 3.22 billion.

The second project for railway sector is ‘Rehabilitation of Bangladesh Railway’s Main Sections (West zone, 1st Revised), spending Tk 1.50 billion.

‘Procurement of 11 MG Locomotives for Bangladesh Railway’ is another project approved yesterday, which will cost Tk 4.81 billion.

It is intended to meet the increasing demand of service in Dhaka-Chittagong route.

Japan Bank of International Co-operation will finance TK 3.35 billion for the project.

ECNEC also approved ‘Water Management Development Project (2nd revised)’ to rehabilitate the dilapidated and weak water infrastructures.

The Daily Sun/Bangladesh/ 20th June 2012

SME Foundation Director Monwara Hakim Ali chairs a discussion at SME Foundation auditorium in Dhaka Tuesday.

Local and foreign participants at a discussion Tuesday identified high bank interest rate as a big challenge for the growth of the Small and Medium Enterprises (SMEs) in Bangladesh.

They also found low skills of both entrepreneurs and employees, and absence of proper technological support as other challenges for the sector.

The SME Foundation organised the roundtable styled: ‘Challenges and Opportunities of SMEs in Bangladesh’ at its auditorium in Dhaka in support with Brac Business School and the University of Oklahoma, USA. Participants say bank loan rates for SMEs are higher compared to big companies.

“Private commercial banks often charge 17 percent and more as interest for SMEs, which is at least two percent lower for big corporate houses,” said Syed Shoaib Hasan, a local entrepreneur.

Speaking at the discussion, Jeff Moore, Executive Director of Oklahoma-based Center for Creation of Economic Wealth, said access to finance at a justified rate of interest is indispensable for the growth of SMEs as the sector entails employment and production of a country.

“The high rate of interest, as I came to know here, is really a big issue and it must be addressed with policy initiatives,” Jeff told the discussion.

Commenting on the issue, SME Foundation Managing Director Syed Rezwanul Islam said though high interest is a big challenge for the SME sector, it’s up to a bank’s own policy to facilitate SMEs.

“Yes, it (high rate of interest) has become a big challenge for SMEs. But, we are constantly pursuing the central bank and management of the banks for a logical rate that could help grow this sector,” he said.

He said the role of the SME Foundation is to address the ‘missing-middles’ so that entrepreneurs could enhance their capacity broadly to contribute to the economy.

Director of BRAC Business School, Mamun Rashid, said Bangladesh has immense potential to expand the SME sector by just providing training facility and creating space for entrepreneurs to get adequate finance.

He said entrepreneurs have no capability to prepare a bankable proposal to get loans. “Entrepreneurs must improve themselves by getting trained to learn how to write a good proposal and operate business efficiently,” he said.

The Daily Sun/Bangladesh/ 20th June 2012