Business News

» 15% VAT ON ALL PORT SERVICES TO HURT BUSINESSES, CONSUMERS

Businesses are expected to face an increase in export and import costs as 15 percent value added tax (VAT) will be charged on all port service fees in line with a recent directive of the revenue authority. The National Board of Revenue (NBR) said the indirect tax should be collected on all services from security checks of goods to settlement of shipments. The NBR directive came after the Chittagong Port Authority (CPA) sought clarification on the applicability of VAT on charges and fees collected on various services provided to businesses. The authority of the seaport, which handles 80 percent of (more…)

» DOLLAR RALLY CONTINUES…..

  appreciate against the taka although the central bank injected more than $1.11 billion into the market so far in fiscal 2017-18 as it tries to keep the exchange rate stable. Yesterday, the interbank exchange rate stood at Tk 82.75 per dollar, up from Tk 82.70 a week earlier and Tk 78.70 a year ago, according to the central bank. The BB sold $46 million to banks in the first eight days of January and $308 million in December. In total, it sold $1.11 billion to banks from July 1 to January 8 this fiscal year. The taka has been (more…)

» WB TO GIVE $245M DEAL FOR BD SAFETY-NET SCHEMES

The World Bank (WB) has agreed to sign a US$245 million additional loan agreement with Bangladesh for ensuring equity, efficiency and transparency in the latter’s safety-net programmes. An agreement in this regard is expected to be signed on Tuesday at the NEC-II Conference Room at the Economic Relations Division (ERD) in Dhaka’s Sher-e-Bangla Nagar area. ERD secretary Kazi Shofiqul Azam and WB country director Qimiao Fan will sign the agreement on behalf of their respective sides. The Washington-based lending agency’s total commitment to the project, with the additional financing, stands at $745 million while the project is expected to end (more…)

» BSEC ASKS TRUSTEE OF GRAMEEN ONE TO COMPLY WITH 2008 DIRECTIVE

The securities regulator has asked the trustee of Grameen One: Scheme Two to comply with the directive issued in 2008 setting a tenure of 10 years for all closed-end MFs. As per the regulatory approval, Grameen One: Scheme Two was floated in 2008 with a tenure of fifteen years. In 2008, the Bangladesh Securities and Exchange Commission (BSEC) also issued a directive setting 10-year tenure for closed-end MFs. The tenure of Grameen One: Scheme Two will be ten years in September next. As per the BSEC letter sent to the trustee, Grameen One: Scheme Two will have to be closed (more…)

» Central bank eases EDF financing process

The central bank has eased the process of the Export Development Fund (EDF) to facilitate access to financing in foreign exchange for input procurements by manufacturer-exporters. A Bangladesh Bank (BB) circular on Sunday said, “To bring ease in operations of EDF, revised operational procedure prepared through compilation of existing instructions.” The Authorised Dealer (AD) banks can borrow US dollar funds from the EDF against their foreign currency loans to manufacturer-exporters for input procurements. At their option, the ADs can also lend to some extent from their own foreign exchange funds for input procurements. The EDF is managed by the Forex (more…)

» Remittance slumps to six-year low

Remittance dropped to a six-year low to $13.53 billion in 2017 as many expatriate Bangladeshis sent money home through illegal channels. In the just-concluded year, Bangladesh’s key source of foreign currency was 0.53 percent lower than that of 2016 when migrant workers remitted $13.6 billion, according to data from the central bank. The migrant workers opted for the illegal channels like hundi for most part of the year because of a lower rate of the American dollar against the taka, according to bankers and experts. Remittance inflow, however, accelerated in the last few months of the year as the local (more…)

» AGGRESSIVE LENDING BB blocks funds of two banks

Bangladesh Bank has frozen Tk 51 crore from ONE Bank’s current account with the banking regulator and Tk 25 crore from Premier Bank’s for their aggressive lending practices that took them way past the permissible limit for advance-deposit ratio (ADR). The central bank blocked the amounts on December 17 in line with the Bank Company Act, 1991 — a first in case of private commercial banks. The penalty means the banks will not be allowed to show the blocked amount as cash reserve ratio and they will not enjoy any interest on the sum. “It is a rare move taken (more…)

» Banking experts highlight 5 challenges to PPP implementation

Banking experts on Wednesday pointed out five major challenges, including time and cost overruns, to implementing public private partnership projects. Separately, they also called for development of homegrown core banking software for more convenience, during a seminar held at the Bangladesh Institute of Bank Management. While two research papers titled ‘Financial and non-financial issues in implementing PPP in Bangladesh’ and ‘An evaluation of core banking software in banks of Bangladesh’ were presented, banking and economic experts of the country also discussed about ways to overcome the challenges. The study found five major challenges of PPP implementation including cost and time (more…)

» AB Bank laundered Tk 165cr to UAE

The AB Bank has allegedly laundered around Tk 165 crore to the United Arab Emirates through two shady organisations in the name of investment, according to a Bangladesh Bank probe report. The board of directors of the AB Bank in December 2013 approved investment of $20 million in Singapore-based fundraising and investment company Pinnacle Global Fund Pte Ltd (PGF) through the bank’s Offshore Banking Unit (OBU). In February 2014, the OBU laundered the money to an account at the UAE-based Abu Dhabi Commercial Bank (ADCB). The account belonged to Cheng Bao General Trading LLC which acted as a Special Purpose (more…)

» Thrust on stopping fake currency flow between India, Bangladesh

A joint task force has emphasised on increasing cooperation between India and Bangladesh to check flow of fake currency between the two countries. The call was made on first day of the three-day conference of the task force on fake currency notes between the two neighbouring countries. The conference, which began on Sunday, is taking place at Police Headquarters (PHQs) in Dhaka. Additional Inspector General of Police (Admin and Ops) of the PHQs Mukhlesur Rahman formally inaugurated the conference, reports UNB. DIG (Crime Management)of the PHQs Rawshan Ara Begum led Bangladesh delegation, while her counterpart Inspector General (IG) of National Investigation Agency (more…)