The Dhaka Stock Exchange and small investors yesterday protested the finance minister's comment that the stockmarket is an 'evil market'.

“It's an evil market. I won't comment on it,” said Finance Minister AMA Muhith, on Monday in parliament, during the passage of the supplementary budget for the outgoing fiscal year.

But Muhith did not explain why it is an evil market.

The minister made the comment three days after he proposed the budget for fiscal 2012-13.

Reacting to Muhith's remark, DSE President Rakibur Rahman said: “It seems that the honorable finance minister has grown impatient."

It remains to be seen whether the incentives announced by Muhith for the stockmarket are being implemented, Rahman said.

The stockmarket is a sensitive market, so any negative comment will influence the market negatively, Rahman said.

During his speech, Muhith had also mentioned that there would be no great impact on the economy if he did not give much attention to the stockmarket.

Referring to the observation, the DSE chief commented, "Economic development will never be possible if the stockmarket is ignored."

The DSE chief urged the minister to consider the stockmarket as an alternative source of funds to develop infrastructure and undertake development projects.

Speaking on investments made by banks in the stockmarket, Rahman said the investments are below 2 percent of the banks' liabilities.

Presently, commercial banks are allowed to invest 10 percent of their liabilities, according to Bangladesh Bank directive.

Ahmed Rashid, senior vice-president of DSE, also protested Muhith's comment that he said might transmit bad signals to the economy.

Small investors, under the banner of Bangladesh Share Investors' Association (BSIA), also protested the minister's remark.

They staged a demonstration in front of DSE and shouted slogans against Muhith.

Mizanur Rashid Chowdhury, president of BSIA, said: “The minister's comment has upset us, as he is our guardian.”

The Daily Star/Bangladesh/ 13th June 2012

NCC Bank has recently re-elected Md Nurun Newaz Salim as its chairman and Mostafizur Rahman Dulal as vice chairman, the Bank said in a statement yesterday.

Salim is a sponsor director of the Bank and a former chairman of Central Insurance Co Ltd and vice president of Chittagong Chamber of Commerce and Industry.

Dulal is the chairman of Crown Group and a director of National Life Insurance Company.

The Daily Star/Bangladesh/ 13th June 2012

Rino Donosepoetro, head of audit for South and South East Asia of Standard Chartered Bank, is now in Dhaka for a three-day visit when he is expected to meet key stakeholders of the Bank.

Donosepoetro joined StanChart in 1997. Prior to joining GIA in 2010, he was the chief executive officer of the Falkland Islands from 2007.

He also worked with Permata Bank, the Bank said in a statement yesterday.

The Daily Star/Bangladesh/ 13th June 2012

The government has formed a high-powered committee to tackle a fund crisis in the power sector.

The government has also decided to continue tax breaks for the power plants that will come into operation after 2013.

The committee led by Finance Minister AMA Muhith will also examine various proposals of the power, energy and mineral resources ministry including that of imposing surcharge on mobile phone calls to build up an energy fund.

The committee was formed at a meeting with Prime Minister Sheikh Hasina in the chair at her office yesterday.

Secretaries of the finance ministry, energy division, power division and the National Board of Revenue will be the members of the committee.

The power and energy ministry in its proposal said 14 independent power plants have not been getting loans from banks as the banks are suffering from a liquidity crisis.

The power plants have also not been getting necessary loans from a Tk 1600 crore Bangladesh Infrastructure Finance Fund (BIFF), which was formed two years ago.

Muhith said the fund was created for all infrastructure projects and so far none from the power sector applied for the fund.

The power ministry proposed granting loans quickly from the BIFF.

The ministry also suggested the government issue directives to the Bangladesh Bank and commercial banks to give loans and open letters of credit (LCs) quickly in favour of the sponsors of the power plants.

The ministry placed a nine-point proposal for the power and energy sector at the meeting through a presentation.

It proposed imposition of surcharge on mobile phone calls at the rate of Tk 0.15 to 0.20 per call and a hike in gas prices to build up the energy fund.

The ministry recommended releasing a tax-free bond to finance the big power plants.

However, a senior official who attended the meeting said many of the power ministry proposals are complicated.

He said those proposals will be scrutinised further by the committee before taking a final decision.

The prime minister at the meeting issued directives to the authorities concerned to take necessary steps for speedy implementation of the ongoing power projects.

Another official who also attended the meeting said some sponsors are failing to implement the projects due to huge loads as a single entrepreneur was awarded many projects.

The premier asked the authorities concerned not to award too many power projects to a single company, according to officials.

UNB adds: For the independent power producer, it is needed to waive income tax, duty, VAT, supplementary tax and infrastructure development tax as the production cost of these plants will be higher, according to the meeting.

If the waiver is not given, the subsidy of the government will also increase. That is why the government has decided to implement the SRO of 1999 for the under-construction power plants.

In 1999, the government through a statutory regulatory order (SRO) gave the tax break facility for power plants for 15 years.

Later, through another SRO in the same year the tax holiday facility was limited for those plants that will begin power generation by 2013.

PM's Press Secretary Abul Kalam Azad briefed reporters after the meeting.

He said the prime minister gave some specific decisions to ease the implementation of power generation projects.

The decisions include simplifying of LC opening for importing necessary equipment for power plants, continuation of a 15-year tax holiday facility and previous SRO on the issue.

The meeting also decided to fill the land of the proposed coal based power plant in Bagerhat through dredging the Pashur and Maidhora rivers.

Law Minister Barrister Shafique Ahmed, Water Resources Minister Ramesh Chandra Sen, Prime Minister's advisers Tawfiq-e-Elahi Chowdhury and Mashiur Rahman, State Minister for Power, Energy and Mineral Resources Md Enamul Haque also attended the meeting along with the secretaries concerned.

The Daily Star/Bangladesh/ 13th June 2012

Governor of Bangladesh Bank Dr. Atiur Rahman launching Western Union Money Transfer service with NCC Bank by giving remittance to a beneficiary Monday. Chairman of NCC Bank Md Nurun Newaz Salim and managing director Mohammad Nurul Amin also seen.

National Credit and Commerce Bank Ltd (NCC Bank) Monday launched remittance transfer services, enabling millions of Bangladeshi expatriates to send their hard-earned money to their near and dear ones in a fast and secured way.

Under the service, introduced in collaboration with TMSS, a non-government organisation, and Western Union, remittances can be withdrawn from over 600 retail locations of the bank and TMSS across the country, officials said.

Bangladesh Bank (BB) Governor Dr Atiur Rahman as the chief guest launched the product at a city hotel.

Presided over by Alhaj Md Nurun Newaz, Chairman of NCC Bank's Board of Directors, the function was addressed, among others, by Prof Dr Hosne-Ara Begum, executive director of TMSS, Roy Fernandez, Director- Operation of East and South Asia, Western Union, Mohammed Nurul Amin

Managing Director & CEO of NCC Bank and Golam Hafiz Ahmed, Additional Managing Director of the Bank.

Dr Atiur Rahman thanked the authorities concerned for building such joint platform to carry foreign currencies of the beneficiaries timely and in a secured way, strengthening country's economy and alleviating poverty.

Mentioning different positive trends of the country's economy, the BB governor hoped that our accumulated efforts including remittance transfer services will propel the economy to the desired level.

Our economic growth is participative and very qualitative, he said, adding that the rural economy is currently experiencing a juvenile appearance. "Whatever the critics say, our economy is in very much stable situation even after the global recession," Dr Rahman said.

Admitting failures in some sectors of the economy, he further said, "Though there are some failures, stories of success is not inadequate."

Mr Rahman suggested all to disseminate the positive stories of the economy.

Mr Nurun Newaz expressed his heartfelt thanks to Bangladesh Bank, Western Union and TMSS.

Mr Fernandez said, "Through our Agents we have been serving Bangladesh for over 17 years, and continue to strengthen our Agent network in keeping with our commitment of being wherever our consumers need us to be."

"We are indeed proud to be a part of connecting almost every part of the world with nearly every corner of Bangladesh," he added. Western Union has approximately 0.5 million agent locations in 200 countries and territories to provide the service.

Mr Nurul Amin sand, "We are delighted to team up with a global player like Western Union to offer its world class money transfer service. We truly believe the combination of Western Union's expansive global network and NCC Bank's local vantage offers real convenience to consumers in Bangladesh."

Dr Hosne Ara expressed his commitment to speedily deliver the remittance to the remotest beneficiary form their 520 locations around the country. She also thanked NCC Bank and Western Union for giving such an opportunity to the NGO to join with the partnership.

The Financial Express/Bangladesh/ 12th June 2012