WASHINGTON: The World Bank yesterday announced it was ready to provide Indonesia with a $2 billion loan, a backstop against a potential debt crisis in one of Asia’s fastest growing economies.

The World Bank said the loan, requested by the Indonesian government, would be held as a contingency against “possible future shocks and volatility.”

While Indonesia has long seen growth rates that would be the envy of the United States or European nations, the economy has slowed recently thanks to a drop in export demand.

The Daily Sun/ Bangladesh/ 17th May 2012

STOCKHOLM: The International Monetary Fund (IMF) warned that due to the stronger Swedish kronor, Swedish economy could face a brake this year with weak export demand and economic growth of somewhere between zero and 1 percent, local media reported yesterday.

According to the Swedish daily Dagens Nyheter (DN), the IMF commented the banking system of Sweden as vulnerable in that it was five times bigger than the country’s GDP, which together with the reliance on dollar financing and the exposure to the economic situation of other European countries, could be a problem for the Swedish economy.

Meanwhile the Swedish authorities were planning to introduce higher capital criteria in the bank responding to the weak development of housing market and the high proportion of loan that reached 170 percent of the income of Swedish families.

According to the IMF, there was further room for Sweden to lower its housing prices until they reached a stable level and the fall in prices, however, would not cause big problems for banks and the financial system.

The Daily Sun/ Bangladesh/ 17th May 2012

Presidents of the bourses and experts have expressed their concern over investors' 'over dependency' on the issue of holding minimum two per cent shares by sponsor-directors, as at present, it seems to surpass all other fundamentals issues.

They said there are other important fundamental issues, which should be considered for the market's growth and stability.

Their comments came Monday, as the market has recently faced volatility due to rumours regarding the upcoming verdict on the writ petitions filed with the High Court (HC), challenging the directive of holding minimum two per cent shares by sponsor-directors.

"What's the necessity of such a market where the investors mainly depend on the issue of holding 'two per cent' or 'thirty per cent' shares?" said the Dhaka Stock Exchange (DSE) president Rakibur Rahman.

He said in a stock market the dependency on rumours may be twenty to thirty per cent. "But how is it possible that the investors fully depend on rumours?"

He said a group of unscrupulous people are spreading rumours regarding the writ petitions.

"Some people are saying a lawyer is not related with the petition. On the other hand, others are saying that such lawyer is related with the petition. As a result, the market is experiencing a volatile situation," Rahman said.

He said rumours were also created while the monetary policy was unveiled.

"The central bank fixes its monetary policy considering the national economy. So, why will the investors depend on rumours without depending on the companies' fundamentals?"

He said the securities regulator and both the stock exchanges are trying to win the writ petitions. "But the natural growth of the market will be affected, if other fundamental issues are not prioritised."

Akter H Sannamat, a market expert and former managing director of Prime Finance and Investment, said other issues, which should be addressed at this moment, are becoming invisible due to the recurrent discussion on holding minimum two per cent shares by the sponsor-directors.

"The issue of purchasing shares by sponsor-directors is a short-term measure. What will happen after the issue is over?"

He said it is necessary to put light on other important long-term issues besides minimum shareholding by sponsor-directors.

"Now we should think about the upcoming budgetary measures, which will have a long-term impact on the market," Sannamat said.

He stressed on bringing more foreign investors by offering them facilities for the sake of long-term development of the market.

"Other important issues will remain unaddressed, if the authorities concerned and the investors mainly focus on minimum shareholding by sponsor-directors," Sannamat added.

However, the Chittagong Stock Exchange (CSE) president Al-Maruf Khan expressed different opinions regarding the issue of holding minimum two per cent shares by sponsor-directors.

"Minimum holding of shares by sponsor-directors was an important issue in the stock market rejuvenation package. Other issues were suggestive. That's why, the investors' expectation regarding the compliance of purchasing two per cent shares was triggered," Khan told the FE.

However, the market will face more volatility, if it takes more time to settle the issue. The investors should not depend on only one issue to purchase or sell their shares, he added.

Professor Dr. Mahmood Osman Imam of finance department of Dhaka University said other issues should also be prioritised for the sake of the market.

"The issue of holding minimum portion of shares should have been solved earlier through relaxed way," Imam told the FE.

Financial Express/ Bangladesh/ 15th May 2012

NBR chairman Dr Nasir Uddin Ahmed is arriving in the port city to attend the pre-budget view exchange meetings with trade bodies tomorrow.

He is expected to attend a meeting with directors of Chittagong Chamber of Commerce and Industry at 10.00 am and another meeting with directors of Chittagong Metropolitan Chamber of Commerce and Industry at 11.30 am on Tuesday.

The secretary of the internal resources division (IRD) is scheduled to address two seminars at the Chittagong Customs House in the afternoon as the chief guest. The seminar on e-payment will take place at 3.30 pm and the one on 'Automation of Chittagong Customs House: Recent Trends' at 5.30 pm.

Commissioners, additional commissioners, deputy commissioners and senior officials of the Chittagong Customs House and the national board of revenue will attend the seminars, officials said.

Financial Express/ Bangladesh/ 15th May 2012

M Haikal Hashmi, Deputy Managing Director of Trust Bank Limited, seen at a workshop on market segmentation at the bank’s Training Academy on Sunday.

Trust Bank organised a workshop on SME market segmentation database at its Training Academy in Dhaka city on Sunday.

M. M. Haikal Hashmi, deputy managing director of the Bank, according to a press release, inaugurated the workshop.

T. I. M. Rawshan Zadeed, vice president & head of SME & Ashraful Alam, joint director, Bangladesh Bank were present.

Officers from different branches and SME department of the Bank were part of the meeting.

The Daily Sun/ Bangladesh/ 15th May 2012