A total of Tk 1.25 billion syndicated loan has been arranged for setting up a spinning mill and a composite textile mill. As lead banks, EXIM Bank has arranged Tk 0.63 billion for Outpace Spinning Mills Ltd, while BRAC Bank has arranged Tk 0.62 billion for Graphics Textiles Ltd, according to press statements.

The International Monetary Fund (IMF) has suggested adoption of a new strategy on the Rupali Bank divestment following delay by the Saudi prince to strike the final deal, sources said. Key steps are needed to advance the divestment programme of the National Commercial Banks (NCBs), including development of a new strategy for Rupali Bank divestment, said an IMF letter sent to the Finance and Planning Adviser Mirza Azizul Islam recently.

Turnover on the Dhaka Stock Exchange (DSE) yesterday crossed Tk 300 crore mark for the first time with the stock market regulator terming the recent upward trend ‘unusual’. The total turnover on the DSE recorded an all time high at Tk 316.83 crore, surpassing the previous record of Tk 275 crore set on July 22 this year.

IMF Deputy Managing Director Takatoshi Kato has assured Bangladesh of their active engagement in a fashion commensurate with the country strategy for economic growth. “Government (of Bangladesh) will seriously keep in view the urgent need to contain the rising inflationary trend through appropriate policies as the government finds appropriate,” he hoped in a meeting with Finance Adviser Dr Mirza Azizul Islam in Washington on Sunday.

Laos is keen to import skilled manpower from Bangladesh for its booming construction industry, visiting Laos deputy foreign minister told the foreign adviser during a meeting in Dhaka yesterday. The Laos deputy foreign minister, Phongsavath Boupha, also said his country is ready to consider simplifying visa procedures to facilitate greater trade relations.

Laos is keen to import skilled manpower from Bangladesh for its booming construction industry, visiting Laos deputy foreign minister told the foreign adviser during a meeting in Dhaka yesterday. The Laos deputy foreign minister, Phongsavath Boupha, also said his country is ready to consider simplifying visa procedures to facilitate greater trade relations.

India is poised to provide Bangladeshi businessmen a five-year visa with a broader goal of fostering trade and investments between the two neighbouring countries. “We’re ready to grant five-year business visas to the members of the Bangladeshi business community,” the Indian High Commissioner to Bangladesh, Pinak R Chakrabarty said.

Inflation rate on food items has increased in August due mainly to high prices in the international market and low domestic production but at the same time decreased on non-food items. The overall inflation rate on point-to-point basis reached 10.12 percent in August, which was 0.02 percent higher than that of July, according to the Bangladesh Bureau of Statistics (BBS) data.

Inflation rate in the country has gone high on enforcement of IMF (International Monetary Fund) prescription to liberalise imports, not because of huge money supply, speakers said at a workshop in Dhaka.

Pran, a leading food company, yesterday signed US$ 2.5 million deals with two companies to export its products to Middle East. Under the agreements, Ahmed Al Wadaani Est Trading will import Pran products worth $ 1.5 million for KSA market for one year, while Aspen Trading and Contracting Co will import Pran products worth $ 1 million for one year for Qatar market.

London-based Economist Intelligence Unit (EIU) has projected Bangladesh’s economy will continue to grow at 6.5 percent during 2007-09 fiscal years, similar to that in 2006-07.
“The composition of growth in 2007/08 and 2008/09 will be similar to that in 2006/07, as record inflows of workers’ remittances underpin activity in the services sector and the manufacturing industry continues to make a positive contribution,” EIU said in an outlook released recently.

Bangladesh needs to record a growth rate of at least 4.0 per cent in agriculture a year if the country wants to achieve the objective of halving its extreme poverty by 2015, says a new World Bank report.

The International Monetary Fund on Wednesday slashed its 2008 global economic forecast, warning that turbulence stemming from a crisis in the US housing sector could crimp growth worldwide. The world economy is expected to expand 4.8 percent next year after a 5.2 percent pace projected for 2007, the IMF said in its twice-yearly World Economic Outlook (WEO) report.

The central bank fears a higher budget deficit this time due to recent floods that induced net additional expenditure. However the impact on domestic financing of deficit is likely to be limited, in case the additional expenditure is financed by incremental foreign assistance, Bangladesh Bank (BB) said in its latest quarterly.

The government has promulgated the Bank Company (Amendment) Act 2007 which said banks would need to increase their respective capital base to Tk 200 crore and keep the number of directors limited to 13.

Manpower export hit an all time high this year with 425,000 workers so far departing the country for abroad. “Many more are expected to leave over the remaining months of the year,” Expatriates’ Welfare and Overseas Employment Ministry said in a statement yesterday. “This is an all time record.”

Bangladesh Bank (BB) has decided not to go for implementing an International Monetary Fund (IMF) suggestion at the moment that asked to be tough on loan defaulters and to increase the bank capital.
An IMF team, which visited Dhaka last month, had suggested that the central bank declare a loan as outstanding if it becomes overdue for three months. As per the existing rules, a loan is declared default if it is overdue for six months.

The visiting First Vice Foreign Minister of Laos, Phongsavath Boupha, Sunday called upon Bangladeshi businessmen to promote trade relations between the two countries, reports BSS. He gave the call while exchanging views with leaders of the Dhaka Chamber of Commerce and Industry (DCCI) at a city hotel.

The government plans to set up a public-private platform styled ‘Bangladesh Better Business Forum’ (BBBF) by early next month to involve the business community in policymaking. To be headed by the chief adviser, the forum will consist of government’s policymakers, chief of army staff, business leaders, civil society members and economists.

The Bangladesh Bank has advised the commercial banks to follow the strategies it has devised to deal with the entrepreneurs in maintaining the growth of private sector credit, sources said.