GAIBANDHA: Karmasangsthan Bank, Gaibandha branch disbursed a total of Tk 134 million as loan at a nominal interest to 2,222 beneficiaries of five upazilas in the district in the last few years.

According to sources, since its inception in 2002, the bank has been disbursing loans, ranging from Tk 25,000 to Tk 5 lakh, to the jobless people of Gaibandha Sadar, Sundarganj, Saghata, Fulchhari and Sadullapur upazilas in the district.

The loans were disbursed in different sectors including poultry and dairy farm, fisheries, beef fattening, welding factory, nursery, furniture and small scale cottage industries and other income generating activities in both rural and urban areas of the district, sources said.

Jahangir Hossain, a beneficiary of Purbapara area of Gaibandha district

town, said he had established a poultry farm in 2009, taking Tk 5 lakh loan from the bank without any hassles.

He was able to turn the wheels of fortune alleviating his poverty as he was earning Tk 10,500, selling at least 1,500 eggs of the farm everyday, he said.

The bank realised Tk 9.33 crore classified and outstanding loans from the beneficiaries of the upazilas during the same period, said an official of the bank.

Senior Principal Officer and Manager of the branch M Jahangir Alam said they were giving more emphasis on enhancing credit flow towards the potential sectors in the district.

Transparency and accountability were also ensured at the time of loan disbursement to the jobless people of the district, he pointed out.

The Daily Sun/ Bangladesh/ 15th May 2012

Azharul Islam, Chairman of Board of Directors of Uttara Bank Limited, presides over an AGM at Shafipur in Gazipur on Monday.

Uttara Bank Limited declared 15 percent stock dividend and 20 percent cash dividend for its shareholders for the year 2011.

The announcement came at the Bank's 29th annual general meeting (AGM) held at the Rangamadi Waterfront at Shafipur in Gazipur Monday, said a press release.

The Bank also enhanced its authorised capital from Tk 5 billion to Tk 6 billion. A large number of shareholders also attended the meeting.

The Daily Sun/ Bangladesh/ 15th May 2012

Bangladesh Bank (BB) Governor Dr Atiur Rahman will leave here for Nepal today to attend 41st meeting of the board of directors of Asian Clearing Union (ACU) and SAARCFINANCE governors' symposium and SAARCFINANCE group meeting.

The governor will leave Dhaka by a Biman flight at 8.50am, said a BB press release on Monday.

General manager AFM Asaduzzaman, GM (forex) Kazi Saidur Rahman and DGM, BB's training academy Dr Md Habibur Rahman will accompany him.

The Daily Sun/ Bangladesh/ 15th May 2012

The state-owned Janata Bank Limited has suspended local and foreign purchase bill payment service recently due to fund shortage.

The Asset Liability Committee (ALCO) of Janata Bank has made the decision in a recent meeting presided over by Bank’s Chief Executive Officer (CEO) and Managing Director SM Aminur Rahman. The Bank authorities issued a circular to this effect last week to inform the matter to local exporters.

Meanwhile, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President M Shafiul Islam sent a letter to Banking Division Secretary Shafiqur Rahman Pathwari to express their concern about the suspension move. In the letter, he urged the government to make Janata authorities alter its decision for the sake of the garment exporters.

Local garment manufacturers are facing tough international competition due to a recession-like situation in the Eurozone countries, reducing per unit price of apparel items, the letter also reads.

A huge number of country’s working force is employed in the RMG sector, the letter said, adding that apparel manufacturers would face a huge crisis to pay workers’ salary if they fail to en-cash their bills.

About the apparel exporters’ concern, Banking Division Secretary Shafiqur Rahman Pathwari told daily sun on Monday, “We have already received the letter from the BGMEA and will inform the matter to finance minister,” Meanwhile, the financial health of the state-owned commercial banks (SCBs) has deteriorated in last three years because of concerned authorities’ failure to manage their activities properly, Banking Division sources said.

In recent months, the easy access to SCB funds by the government to meet the latter’s financing needs, in the context of growing budget deficit and deteriorating balance of payment (BOP) problems in the outgoing fiscal year, has further aggravated the situation.

The deposit growth of four SCBs including Janata has declined in recent months compared to their credit growth, which indicates their weak treasury management, Banking Division official said.

Last year Janata Bank took loan from the call money market to meet its regular financing needs, according to Bangladesh Bank information. However, Janata Bank’s classified loans were the lowest among the SCBs at the end of 2011. The deposit of the bank has scaled up to Tk 36.185 billion which was also 26.27 percent higher than that of the previous year.

The Daily Sun/ Bangladesh/ 15th May 2012

The government on Monday approved a proposal to form a Tk 1 billion fund to provide technical assistance to the projects being implemented under public-private partnership (PPP).

The approval came at a meeting of the Cabinet Committee on Economic Affairs with Finance minister AMA Muhith in the chair.

The meeting also approved a set of guidelines, prepared by the Finance Division, for some mega projects including deep-sea port, metro rail and elevated expressway.

Besides, the cabinet body also okayed a proposal to spend up to 30 percent of the projected expenditure of Viability Gap Funding (VGF) under the PPP projects.

The government, however, failed to spend any budgetary allocation for the PPP projects in the last three fiscals.

“Since coming into power, the government has allocated more than Tk 35 billion for PPP projects. But in the last three and a half years, the finance ministry failed to spend a single taka from the fund other than making a policy and setting up an office in this regard” a finance ministry official said.

According to the draft technical assistance guideline, the revolving fund will be managed by the PPP office. Financial assistance from development partners will be accepted in the fund.

The assistance to be given to PPP projects will later be deducted partially or in full from successful bidders.

The technical assistance may be used in pre-feasibility and detailed feasibility studies, purchase processing, tender document preparation and evaluation, completing technical, financial, commercial and legal assistance activities of the project.

Besides, the VGF fund will be released on the basis of the equity of private entrepreneurs and will be given on a month, quarter, half-year and yearly basis.

According to the draft guideline, the VGF assistance will be given to only those projects which will be completed on build, operate and transfer basis.

For getting such assistance, the bidder must be selected through competitive bidding and the economic rate of return of the project must be equal or more than the level fixed by the PPP unit of the Finance Division.

The Finance Division will change the level time to time through issuing circulars.

An official of the Finance Division said the guidelines were prepared after consulting with the technical assistance team of the Asian Development Bank, taking opinions of the stakeholders and reviewing the guidelines of different countries.

The government earlier adopted a public-private partnership (PPP) policy. As per the policy, a separate PPP office was established under the Prime Minister's Office. A chief executive officer was also appointed to the PPP office.

Besides, a PPP unit was formed at the Finance Division to facilitate technical assistance the PPP projects.

The government launched the PPP initiative in fiscal 2009-10, allocating Tk 25 billion in the budget in a bid to involve the private sector in big infrastructure, power, and energy projects.

The cabinet committee also gave its nod to a proposal of commerce ministry to exempt Trading Corporation of Bangladesh from public procurement rules for another three years to facilitate import of seven essential items quickly to keep the prices stable.

The exemption will allow the state-run TCB to import edible oil, sugar, pulse, gram, onion, date and baby foods quickly without following the mandatory PPR to speed up the process of market intervention ahead of the Ramadan, officials said.

TCB has been enjoying such exemption since 2009, which will expire on May 26 this year.

The Daily Sun/ Bangladesh/ 15th May 2012