The Bangladesh Bank in its latest Monetary Policy emphasized on the dual objectives of maintaining price stability and supporting the faster economic growth. A rise in import payments and increased deficit in the financial account are projected to reduce the balance of payments surplus, and will help cut the need for US dollar purchases to limit the appreciation of taka, said ICCB President Mahbubur Rahman while inaugurating the day long workshop on New URDG: The Uniform Rules for Demand Guarantees organized by International Chamber of Commerce-Bangladesh.

ICCB President observed that the Central bank has been pursuing the commercial banks to adopt modern banking systems. It is also important that the Central Bank ensures the commercial banks adopt new international tools like the new URDG and UCP etc. to be at par with the international practices and thus help in having sound monetary system in place.

In the context of globalized and free market economy it is of utmost importance that we keep pace with the new technologies that are being developed for better and secured international trade. In order to facilitate our professionals to be aware of the latest rules, this workshop on the new URDG is being arranged to help the bankers and other professionals acquire knowledge so that they may develop themselves with the latest international trade tools, ICCB President added.

The ICCs new Uniform Rules for Demand Guarantees URDG), is considered an authoritative guide and reflects international practice in the use of demand guarantees, while preserving the goal of the original rules – to balance the interests of the trading parties and curb abuse in the development of international trade guarantees. The revision, formally called URDG 758, was agreed to after a two-and-a-half year revision process that produced five comprehensive drafts based on 600 comments from 52 countries. The revision was conducted under the stewardship of the ICC Task Force on Guarantees, a standing body of experts from 26 countries and was adopted by the ICC Executive Board on December 3, 2009. The new URDG are clearer, more precise and more comprehensive than their predecessor, URDG 458.

URDG provides a framework for harmonizing international trading practices and establishes agreed-upon rules for independent guarantees and counter-guarantees among trading partners. The guarantees specify uniform practices for securing payment and performance in worldwide commercial contracts. The World Bank and the United Nations Commission on International Trade Law (UNCITRAL) have adopted the URDG into their standards for financing international trade.

At the inaugural session ICCB President Mahbubur Rahman also distributed certificates among the participants of e-learning certificate programme “FIT Initiaive” (Finance of International Trade).
Internationally reputed and highly experienced practitioner of International Trade Finance and a long standing member of the ICC Banking Commission Mr. Vincent O Brien conducted the workshop and spoke on the occassion. ICCB Vice President Latifur Rahman, Citibank N.A Country Officer & Chairman ICCB Standing Committee on Banking Mamun Rashid and BIA Chairman & ICCB Executive Board Member A. K. M. Rafiqul Islam and ICCB Secretary Ataur Rahman attended the inaugural session. Mamun Rashid also spoke at the occasion. A total of 84 senior and mid-level executives from banks and financial institutions attended the workshop. A similar workshop was held in Chittagong on August 1. A total of 52 participants attended the workshop.