In the context of on-going global financial and economic crisis, banks and businesses need to take stringent measures to ensure that their sales transactions are watertight. ICC Global Trade Finance survey which gleaned hard facts from more than 100 countries reported that 34% of respondents indicated an increase in the percentage of documents refused on first presentation and 94% of respondents experienced increased pressure from applicants to refuse documents during 2010. ICCB President Mahbubur Rahman disclosed this information while he was inaugurating a day long workshop on ICC Rules and Tools for International trade at Dhaka on December 5 organized by ICC Bangladesh and supported by Eastern Bank limited.

Mahbubur Rahman also informed that the global financial crisis will also increase economic uncertainty in Bangladesh, making it difficult for the country to achieve its target annual growth rate of 7 percent, according to World Bank. In a report released on November 29, the World Bank said that economic growth in Bangladesh was strong in the fiscal year that ended this June, reaching 6.7 percent. But the Bank said the growth outlook for the July 2011-June 2012 fiscal year remains uncertain.

We are already noticing the effect of debt problems in the United States and the Euro-zone on Bangladeshs balance of payments and pressure on the exchange rate. It also noted that the countrys slow pace of reforms, inadequate energy supply and poor infrastructure may also affect domestic and foreign investment — further dampening economic prospects. According to World Bank a high and volatile inflation rate driven by food prices remains a concern in Bangladesh. Inflation reached 12 percent in September of this year, the highest recorded since 1999, said ICCB president.

The huge borrowing by the Government during the first five months of the current fiscal year as well as the on-going volatile situation in the stock market has also put tremendous pressure on the liquidity position of the banks which in turn is causing serious problems for the banks to extend credit to the private sector to meet their much needed fund for investment, said Mahbubur Rahman.

The decision of the Central Bank to allow more commercial banks in the private sector may also create additional problems into the liquidity situation as well as shortage of qualified, experienced and efficient officials may worsen the situation further, he observed.

ICCB President hoped that the government would take appropriate austerity measures and cut down all unproductive expenditure, as has been planned by economy like Italy and other EU countries, to meet global financial and economic crisis as well as contain inflation. The central Bank has to take appropriate measures to keep balance of payments stable. The government also needs to be cautious about bank borrowing, which is already much more than it targeted.

Professor Mamun Rashid, ICC Bangladesh Banking Commission Chairman & Dean, Business School of Brac University praised the significant role played by the bankers over 40 years. He also hoped that Bangladesh would be flourished as a Trade Nation instead of Aid Dependent Nation. ICC Executive Board Member Mr. R. M. Khan, Chair of ICC Market Intelligence Group, Mr. Vincent O Brien and ICCB Secretary General Ataur Rahman spoke at the inaugural session. ICC Executive Board Member Mr. Waliur Rahman Bhuiyan, OBE also spoke in the occasion and offered vote of thanks.

About 118 participants from Banks, Financial institutions and Export oriented Industries attended the workshop. Another workshop on the same topic would be held in Chittagong tomorrow (December 7).