The volume of defaulted loans in the banking system rose by 14.78 percent, increasing to Tk 20,098 crore in December 2006 from Tk 17,509 crore in December 2005. The total increase in defaulted loans is Tk 2,589 crore. The amount of defaulted loans in national commercial banks (NCBs) increased 15 percent or Tk 1,479 crore while private commercial banks (PCBs) saw an increase of 23 percent or Tk 822 crore.

The Bangladesh Bank has reserved 10 per cent of its SME sector refinancing fund for women entrepreneurs. The fund will be available at a maximum annual interest rate of 10 per cent to encourage women entrepreneurs in trade, commerce and productive sectors. It may be mentioned that the Central Bank has mobilised a fund of about Tk 3,400 million contributed by the government and development partners as refinance facilities for the commercial banks to lend to small and medium enterprises.

China will continue to see high growth in its trade surplus this year, and could experience inflationary pressures. The central bank of China said that export growth will likely be slower than last year due to a world economic slowdown and a series of domestic policy adjustments. But given the domestic economic environment as well as the increasing strength of Chinas industries in the export market, it will be to difficult to expand imports.

China will continue to see high growth in its trade surplus this year, and could experience inflationary pressures. The central bank of China said that export growth will likely be slower than last year due to a world economic slowdown and a series of domestic policy adjustments. But given the domestic economic environment as well as the increasing strength of Chinas industries in the export market, it will be to difficult to expand imports.

India is set to become third largest economy of Asia next year as it is expected to record 9.2 per cent growth during the current financial year. It will overtake Japan within a year because of boom in services and manufacturing sectors. However, it is still a long way for India to catch up with China, which reported 10.7 per cent increase in the Gross Domestic Produce (GDP) in 2006. India already surpassed South Korea in economic growth.

The country will need to invest $ 7.7 billion in the next 18 years up to 2025 for the exploration of natural gas to meet its growing demand in line with the seven per cent GDP growth. This was revealed in an exclusive report presented recently in the meeting of the council of advisers. The report said the country will need 24 trillion cubic feet (tcf) of additional gas to meet the national demand in the next 18 years. Petrobangla, the stateowned hydrocarbon corporation, prepared the report while the energy division presented it to the council of advisers, aiming to give a thorough idea about the countrys present state of natural gas and mineral resources and their future prospects.

With a view to providing exportoriented information for the businesses in Chittagong region, Export Promotion Bureau (EPB) will open a trade information centre here in the port city on February 14. The centre will be set up at Chittagong Chamber of Commerce and Industry (CCCI) building in Agrabad. EPB Vice Chairman Sahab Ullah announced this while exchanging views with the leaders of the CCCI at a meeting on February 8.

The Indian government has agreed to allow chemical analysis of imported food products from Bangladesh at Guwahati, instead of Kolkata. Earlier, from August to January last the central food laboratory in Kolkata was the only authority to certify the imported food items from Bangladesh because of temporary suspension of operation by the Agartala regional food laboratory.

A Chinese company named Jiangu Red Bud Dying Technology Company plans the biggest ever investment in Bangladesh to produce fabrics from jute in the wake of cotton price hike in the international market. The company plans to invest US$ 400 million to set up a plant in Ishwardi Export Processing Zone. The company, according to the proposal, will gradually raise its investment to one billion dollar. The Chinese company would produce 50 types fabrics including denim from jute produced in Pabna and Jessore region.

Investment in the Asia Pacific hotel sector is expected to exceed seven billion US dollars this year, up 33 percent from 5.25 billion dollars in 2006. New markets such as China, India and Vietnam are expected to see increasing investor interest, while Singapore, Hong Kong and Tokyo will remain favoured destinations.

The caretaker government plans to strike a number of deals within this year for installing some power plants having the capacity of 940 megawatts, part of a big plan for resolving the nagging electricity crisis. The power ministry has submitted a work plan to the council of advisers lining up a number of projects for the deals.

Leaders of the Metropolitan Chamber of Commerce and Industry (MCCI) urged the interim government to withdraw discretionary powers of the tax authorities, cut import duties on raw materials and intermediary products, continuation of tax holiday, and withdrawal of tax concession to whitening of black money. They also asked the government to take immediate measures for creating additional power generation capacity to meet the countrys growing energy needs.

Envoys of the ASEAN countries based in Dhaka expressed their keen interest to invest in hotel, real estate and infrastructure sectors during their meeting with foreign affairs adviser Iftekhar Ahmed Chowdhury at his office in Dhaka on February 7. Being a member of the ASEAN Regional Forum, Bangladesh and ASEAN have close relationship.

The Asian Development Bank (ADB) and the government signed yesterday a US$ 3 million loan agreement to improve governance in the capital market and insurance sector. Economic Relation Division (ERD) Secretary Md Aminul Islam Bhuiyan and ADB Country Director Hua Du signed the agreement on behalf of their respective sides. Visiting Director General of ADBs South Asia Department Kunio Senga was, among others, present on the occasion.

The Bangladesh Bank (BB) has intensified its open market operation to keep the countrys foreign exchange market stable with adequate supply of greenback. Under the measures, the central bank directly purchased around US$ 20 million during the last three days from the commercial banks to help keep their net open position (NOP) within the limit.

The World Bank (WB) continues to take a leadership role in the fight against fraud and corruption, investigating and closing more than 400 cases involving WBfinanced projects over the past two fiscal years and sanctioning over 100 entities for engaging in wrongdoing in projects. Over the past two fiscal years, the World Bank Groups Institutional Integrity Department (INT) investigated and closed 441 external investigations into fraud and corruption in Bank financed projects. As a result of such investigations, the WB debarred 58 firms and 54 individuals due to fraud and corruption over the period covered.

China has launched an economic and trade cooperation zone in Zambia, the first of its kind by the Communist trading giant in Africa to tap local mineral resources and boost trade ties with the continent. The zones establishment is part of Chinas efforts to fulfil its earlier promises to boost its fullfledged cooperation with African nations. China is a Special Economic Zone pioneer.

London has taken a decisive step towards becoming a global centre for Islamic finance, establishing the worlds first secondary market for trading bonds that comply with the Qurans strict laws on earning interest. These shariahcompliant bonds, or sukuk, are structured to pay profits from an underlying business, rather than interest, which is banned under Islamic law as the creation of money from money itself is considered sinful.

The newly Chief Election Commissioner (CEC) ATM Shamsul Huda took oath on February 5. He in first observation about the election he said that his first task would be to devise an action plan for major electoral reforms in consultation with the political parties and other stakeholders. He told that he would make the Election Commission (EC) an institution in which every citizen can take pride.

Electricity costs in urban areas will go up by five per cent per unit above 100 units of consumption as decided by the Advisers Committee on Economic Affairs on February 5. The procedures to make the new rates effective will be initiated immediately. For up to 100 units of consumption, electricity charge per unit would remain at the current rate Tk 2.5. But per unit electricity cost between 101 and 400 units will be increased to Tk 3.15 from the current cost of Tk 3 per unit while it will be Tk 5.25 per unit for above 400 units of consumption, the current rate of which is Tk 5.