Business
Second tranche of $4.7bn loan for Bangladesh gains IMF Board's approval
The International Monetary Fund (IMF) at its December board meeting Tuesday, approved the release of a second tranche of a $4.7 billion loan that was approved last January. This second transfer will see $682 million transferred to Bangladesh's account, to go with close to $450 million in the first transfer.
Alongside the $400 million the country received as loan from the Asian Development Bank (ADB), the IMF monies will help to ease significant pressure that has been building on the country's forex reserves in the last two years.
Also read: Staff-level agreement reached with IMF for next tranche of $4.7 bn loan
Finance minister AHM Mustfa Kamal confirmed it to UNB last night.
The IMF board approved the $4.7 billion loan on January 30.
In the first tranche, Bangladesh received $447.8 million on February 2 this year. The country is expected to receive the rest in another five tranches.
Also read: IMF relaxes forex reserve and revenue targets for $4.70 billion loan
Earlier, in October, an IMF delegation came to Bangladesh on a two-week visit, reviewed the loan programme and placed the second loan tranche proposal before the IMF board.
Rubel Aziz re-elected as Banani Club president
Rubel Aziz has been re-elected president of Banani Club Limited unopposed. He will perform this duty for the next one year.
This election was held on December 9 at Banani Club to select the president and executive committee members. A total of 525 members of the club voted in the election.
Also read: Gaus Khan elected president of Uttara Club
Syed Ahsanul Apon has been elected as a member of the executive council for the second time by getting the highest number of votes.
He got a maximum of 85 percent of the votes.
Also read: 36th National Snooker Championship begins at Banani Club
The other elected members of the ten-member executive committee are – Imtiaz Ahmed, Md. Sharif Ullah Nadim, Faruque Amjad Khan, Makin-Ur-Rashid Rossi, Mamun Akbar, Sifat Ahmed Chaudhuri, Anik Ghosh, Salma Hossain Ash, and Sadia Azam.
Banani Club Election Board Chairman Ahmed Kabir announced this result. At that time 12 members of the board were present.
Bangladesh Bank scraps minimum interest rate on deposits
Bangladesh Bank on Tuesday scrapped the minimum interest rate it had imposed for deposits.
From now on, banks will be able to set interest rates in line with their business interests and collect deposits accordingly.
Also read: Banks set to sell insurance products as central bank greenlights bancassurance
The central bank announced the decision through a circular today (Tuesday). The Banking Regulations and Policy Department of BB issued this notification on Tuesday and sent it to the top executives of the scheduled banks for immediate execution.
The notification stated that the minimum interest rate for deposits was fixed. According to that directive, the central bank instructed all the scheduled banks of the country not to keep the interest rate of fixed deposits below inflation.
Also read: Rural bank deposits down by 22.56 percent: Bangladesh Bank
At that time the maximum interest rate for disbursement of loans was 9 percent. But now there is no such limit in terms of loans. The market-based interest rate system for loans was introduced in July this year.
Hence, there is no need for a minimum interest rate on deposits as well. Due to this, the instruction of August 8, 2021, was canceled, the BB notification said.
Also read: Bangladesh received $1.93 billion of remittance in November: BB
Banks set to sell insurance products as central bank greenlights bancassurance
All the scheduled banks operating in the country can now act as agents of insurance companies.
At the same time, banks can engage in marketing and selling insurance products.
The Banking Regulations and Policy Department of Bangladesh Bank (BB) issued instructions in this regard today (Tuesday).
Also read: Rural bank deposits down by 22.56 percent: Bangladesh Bank
Bancassurance is an arrangement between a bank and an insurance company allowing the insurance company to sell its products to the bank's client base.
According to the instructions, Bancassurance has been introduced through scheduled banks operating in the country. All banks are given the power under the Bank Companies Act, 1991 can do the business of marketing and selling insurance products as 'corporate agents' of insurance companies from December 12 (Tuesday).
Also read: Banks will provide 7% interest on foreign currency deposits: Bangladesh Bank
Those concerned said that bancassurance is a French word. First launched in France and Spain around 1980. Life insurance policies are sold through banks in most European countries. It has also gained popularity in various Asian countries. It was introduced in neighboring India about three centuries ago. Pakistan, Sri Lanka have also been successful in bancassurance.
Bancassurance will be implemented mainly through the branches of the country's banks as per the approved policies and guidelines. There has been a complaint for a long time that the general public's trust in the insurance sector is relatively low, so bancassurance can be a place of trust.
The idea is that customers do not have to go to the insurance company for the insurance product but go to the bank branch.
Also read: Supply of dollars in banks is more than required: BB
BGMEA urges Epic Group to invest in high-end apparel development in Bangladesh
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President
Faruque Hassan has urged Epic Group to make investments in product and design development, particularly in high-end apparels in Bangladesh.
He also requested the Epic Group to continue its support and collaboration in improving efficiency, technical knowledge and sustainability in the RMG industry of Bangladesh.
This call was made by Faruque Hassan during his meeting with Ranjan Mahtani, Executive Chairman of Epic Group, alongside Epic Group CEOs Sunil Daryanani and Dinesh Virwani.
The meeting was also attended by Azfar Hassan, Director of Giant Group.
Held in Hong Kong on December 12, the primary focus of the meeting was to explore avenues to fortify the longstanding business partnership between Epic Group and Bangladeshi suppliers.
They also talked about how BGMEA and Epic Group could work together to enhance global promotion of Bangladesh's apparel industry, focusing on its strengths, world-class workplace safety, environmental sustainability, and exemplary industry practices.
BGMEA President Faruque Hassan urged Epic Group to collaborate closely with their suppliers in Bangladesh in developing their capacities and technical expertise in the manufacturing of high-end apparel products.
He also called upon Epic Group to increase its sourcing of high-value garments from Bangladesh.
Chinese company to invest USD 11.6 million in BEPZA economic zone
Chinese company Quality Sportswear Mfrs Limited is going to invest USD 11.55 million to set up an RMG, luggage, and fashion accessories manufacturing industry in the BEPZA Economic Zone.
BEPZA) signed an agreement with the company to this effect at BEPZA Complex in Dhaka on Tuesday, according to a press release.
Ali Reza Mazid, a member (investment promotion) of BEPZA, and Zhang Zhilan, director of Quality Sportswear signed the agreement on behalf of their respective organisations.
BEPZA Executive Chairman Maj Gen Abul Kalam Mohammad Ziaur Rahman, NDC, psc witnessed the signing ceremony.
This fully foreign-owned company will produce annually 6.05 million pieces of garments and 0.8 million pieces of money bags, travel bags, belts, among other products. The company will create employment opportunities for 3,310 Bangladeshi nationals.
BEPZA has so far approved a total of 26 enterprises, including this one, to establish industries in BEPZA EZ and most of them will produce diversified products. The total proposed investment of these enterprises is USD 529.4 million.
Fashion for Good keen to share knowledge around new innovations with manufacturers in Bangladesh
Priyanka Khanna, Innovation Director – Scaling at Fashion for Good has said Bangladesh is an important region for the textile industry worldwide and they are keen to share their knowledge around new innovations with the manufacturers in Bangladesh.
“Through this partnership we brought innovators; namely, teams from Circ and Infinited Fiber Company to interact, engage, and in the future partner with the local industry actors,” she was quoted as saying in a media release issued on Tuesday.
BMCCI holds seminar on legal compliances for companies
On December 7-8, Bangladesh Apparel Exchange in partnership with Fashion for Good, facilitated the “Chemical Recycling Technologies: Manufacturing Markets Gateway”, in Bangladesh, one of the world's leading garment manufacturing countries.
Fashion for Good, the Amsterdam based global platform for innovation, along with two disruptive technology start-ups focused on textile-to-textile chemical recycling, Circ and Infinited Fiber Company, were the key stakeholders in this initiative.
The two-day visit leveraged Bangladesh's status as a major garment production hub, exploring the potential of chemical recycling technologies to enhance environmental sustainability.
Emphasizing the importance of circularity, the event aimed to spread awareness about current disruptive innovations that could transform the industry's approach to waste and resource management, setting an example for future sustainable practices.
It focused on integrating these technologies within the local manufacturing landscape, securing feedstock partnerships, and developing a value chain for recycled apparel materials.
BGMEA, H&M Group discuss collaboration to further strengthen partnership with Bangladesh
Denim Asia Limited, Knit Asia Limited, Progress Apparels Limited, Ananta BD, Reverse Resources, and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) played pivotal roles in this initiative.
Knit Asia Ltd, notably acclaimed for their commitment to sustainable practices, along with Denim Asia, associated with the sustainable brand Noize Jeans, showcased their commitment to sustainable manufacturing processes.
Progress Apparels Limited, a ready-made garment producer and part of PDS Limited demonstrated its advanced sustainable production facilities. Reverse Resources and the BGMEA hosted an intimate “Meet and Greet Networking Session”, to boost awareness about the technologies in the industry.
Founder and CEO of Bangladesh Apparel Exchange Mostafiz Uddin, emphasized the significance of this event for the wider Bangladeshi textile industry and said, "This tour marks a critical step towards a circular fashion ecosystem in Bangladesh. It's not just an event; it's part of a larger movement to incorporate innovative recycling technologies and establish global partnerships for a sustainable fashion industry."
Labour rights issues are settled: BKMEA president tells ERF seminar
Featuring interactive sessions, factory visits, and knowledge sharing, this initiative offered a platform for fostering collaborations between manufacturers and technology innovators.
Bangladesh Apparel Exchange and Fashion for Good are optimistic about a future where Bangladesh leads in sustainable and circular apparel manufacturing.
BGMEA, H&M Group discuss collaboration to further strengthen partnership with Bangladesh
Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has called on H&M, a global fashion retailer, to increase its sourcing of garments, especially high-value products and those made from man-made fibers, from Bangladesh.
Highlighting Bangladesh's focus on innovation, technological advancements, environmental sustainability, and skill development within the apparel industry, he also urged the global fashion retailer to strengthen its partnership with Bangladeshi suppliers for further business expansion, according to a press release.
Also read: No legitimate grounds to warrant economic sanctions against Bangladesh: BGMEA
The BGMEA president held a meeting with Karin Lind, global head of sourcing, and Fredrik Kragh Myllenberg, head of Controlling Global Production, from H&M Group, a leading global fashion retailer.
The meeting, held in Hong Kong on December 11, focused on fostering a long-term partnership, expanding H&M's business in Bangladesh, and jointly driving sustainability initiatives within the garment industry.
The meeting was also attended by Azfar Hassan, director of Giant Group.
Also read: Strengthened Bangladesh-US collaboration holds promising trade opportunities: BGMEA President
Both sides highlighted the ongoing collaboration between H&M Group and BGMEA to achieve shared sustainability goals in the garment sector, particularly the transition towards a circular and climate-neutral garment industry in Bangladesh.
Faruque Hassan extended gratitude to H&M Group for their support to Bangladeshi suppliers in implementing the recently announced minimum wage by adjusting prices on their orders.
He also thanked H&M Group for its pledge to invest in renewable energy in Bangladesh, aligning with global efforts to reduce emissions.
In a announcement at COP28, global fashion retailers H&M Group and Bestseller pledged to invest in a 500MW offshore wind power project in Bangladesh. Developed by Copenhagen Infrastructure Partners (CIP), the project is expected to reduce emissions by approximately 725,000 tonnes annually.
As Bangladesh aims to move up the value chain by diversifying into high-value products and upgrading technologies, he requested H&M Group to collaborate with their suppliers on developing high-end apparels.
Also read: BGMEA says it doesn’t support clause only applicable to Bangladesh in LC from buyers
Labour rights issues are settled: BKMEA president tells ERF seminar
BKMEA Executive President Mohammad Hatim on Monday said there is no opportunity for the United States to impose trade sanctions on Bangladesh regarding labour rights issues.
“The US cannot impose sanctions over the labour rights issue as it has already been settled. So, if the sanction comes, it would be for political reasons,” said the BKMEA official.
Also read: No legitimate grounds to warrant economic sanctions against Bangladesh: BGMEA
He also urged the government to diplomatically prevent any economic sanctions.
He was speaking at a seminar on ‘Labour Rights and International Trade’ organised by the Economic Reporters’ Forum (ERF) at its auditorium in Paltan on Monday.
Mohammad Hatim said, “Owners and workers have nothing to do in this regard. It is the government's responsibility to deal with it.”
Dr. Mustafa Abid Khan, former member of the Bangladesh Tariff Commission, spoke at the seminar as the chief guest.
Also read: Awami League not worried about any sanctions: Quader
Dr. Mustafa Abid Khan said the message from the United States regarding trade, which is available from various sources, is about trade penalties or fines.
“Tariffs can be as high as 10 percent in this sector. Sanctions will not be imposed immediately. If it comes, it will come gradually. However, it is not yet clear how America will do it,” he added.
The seminar was addressed by, among others, BKMEA Vice President Fazle Shamim Ehsan, ILO Standing Committee President ANM Saifuddin, Industry All Bangladesh Council (IBC) President Amirul Haque Amin and labour leader Tawhidur Rahman.
Also read: Momen hardly bothered by talk of new sanctions
Presided over by ERF President Mohammad Refayet Ullah Mirdha, the session was moderated by the organisation’s General Secretary Abul Kashem.
Onion price drops by Tk 40 per kg amid supply of newly harvested varieties
Onion prices dropped by Tk 40 per kg on Monday, thanks to the arrival of newly harvested Murikata and summer varieties in the markets, market sources said.
On Monday, Murikata onion was retailing at Tk 100 per kg, imported onion at Tk 180, and local variety at Tk 200 per kg. A day before, Murikata onions were selling at Tk140, imported ones at Tk210, and local varieties at Tk 240 per kg.
Also read: Onion hoarders will be identified and punished: DG Consumers Rights
Ministry of Agriculture sources said around 5.71 lakh tons of onion have been produced from July to December of the current fiscal year 2023–24.
This is 1.55 lakh tons more than produced during the same period of the previous fiscal.
Agriculture Minister Mohammad Abdur Razzaque told UNB on Monday that there is enough supply of onion in the market, and so there is no reason for the abnormal price hike.
He said around 50,000 tons of onion is on the way to Bangladesh from India, as per earlier LCs. Also, the supply of newly harvested onions increased in the market. So, the price of onions will come down to a normal level within a week, said the minister.
Also read: Onion prices cooling down in Faridpur markets
However, Bashir Uddin, an onion wholesaler at Karwan Bazar, told this correspondent that the supply of onions increased Monday in the market, and prices also decreased compared to the previous two days.
He said the the volume of new arrivals is increasing every day. speedily as the farmers are getting a good price now.
Bashir also said the raid by law enforcers against illegal hoarding of onions has helped bolster the supply of old onions in the market.
Badal Chandra Biswas, Director General of the Department of Agriculture Extension (DAE), said that each year, Murikata onion is cultivated on about 50 thousand hectares of land, producing about 8 lakh tons.
This year, summer onions have been planted on about 500 hectares of land, with a harvest expected at about 50 thousand tons.
Also read: TCB fails to unload 90 tonnes of imported onions at Benapole
He also mentioned that these Murikata and summer varieties of onion have started coming into the market, and it will be available for 3 to 3 months and a half.
After that, the main variety of onion will start coming into the market, and the production may be around 26 to 28 lakh tons this year, he said.
Biswas said that a high-yielding variety of onion was cultivated on vast tracts of land this year, with prospects of higher production.