Local-Business
Sugarcane threshing begins at Drashana's Carew & Co sugar mill
Sugarcane crushing for 2023-24 fiscal year began at Darshana Carew & Company Sugar Mill on Friday afternoon setting a target of manufacturing 4,030 tonnes of sugar during the current 2023-24 financial year.
Mosharraf Hossain, managing director (MD) of Carew & Co, the crushing target was fixed at 65,000 metric tonnes of sugarcane in 52 days with the recovery rate of sugar at 6.20 percent.
The largest sugar mill in the country had been continuously incurring losses for a long time.
It has turned around a bit due to the increase in the price of sugar by the government. Apart from this, the sugar mill is being modernized by adding new machinery at a cost of about Tk22 crore. It will increase the capacity of sugarcane crushing and sugar production.
If everything goes well this time, the company will be able to reduce the losses, authorities hoped.
Presided over by Chowdhury Ruhul Amin Kaiser, secretary of Bangladesh Sugar and Food Industries Corporation, BSFIC Chairman (Grade-1) Sheikh Shoibul Alam (NDC) addressed as the chief guest at the opening ceremony.
New body takes charges as of CIS-BCCI
The newly elected committee of the Commonwealth of Independent States-Bangladesh Chamber of Commerce and Industry (CIS-BCCI) has taken the charge for the term 2023-2026.
Mohammad Ali Deen has officially taken charge as the President of the new committee of the CIS-BCCI for the term 2023-2026.
The transition took place on Thursday as the outgoing Board of Directors, led by Md. Habib Ullah Dawn, handed over the responsibilities to the new board at the CIS-BCCI Office at Gulshan-1 in Dhaka.
Director of the outgoing board and Vice President of FBCCI Rashadul Hossain Chowdhury took charge as the Senior Vice President of the new Board and Vice President of the outgoing board Jadab Debnath have taken over as Vice President of the newly elected Board.
The new president of CIS-BCCI Mohammad Ali Deen expressed his commitment to bolster the activities of the Chamber in the upcoming days.
He said that collective efforts will drive the growth of the private sector in enhancing our export basket to CIS countries. He also urged everyone's collaboration in this journey.
Habib Ullah Dawn said the past six years were dedicated to elevating CIS-BCCI to a new height.
The strategic policy initiatives and actions have propelled the business community and the private sector forward, he added.
The new Senior Vice President of CIS-BCCI Mr. Rashadul Hossain Chowdhury and Vice President Mr. Jadab Debnath also delivered their speeches during the programme.
A total of 17 directors were elected for the 2023-2026 Board of Directors. One President, One Senior Vice President and One Vice President are elected as office bearers among the Board of Directors.
The other Directors of the seventeen Board of Directors are Dr. Joshoda Jibon Deb Nath, Managing Director of Technomedia Limited & Vice President of FBCCI Dilip Kumar Agarwala, Managing Director of Diamond World Ltd. & Director of FBCCI, Salma Hossain Ash, Managing Director of Rupoker Properties Ltd. & Director of FBCCI, Dr. Lokiat Ullah, Deputy Managing Director of Biopharma Ltd., Shafquat Haider, Managing Director of Ciproco Computers Ltd., Tauhida Sultana, Managing Director of Advance Homes Pvt. Ltd., Abdul Latif Sarker, Managing Director of Shafiul Moznavin Construction Ltd., Md. Khayer Mia, Managing Director of Hyacinth Group, Md. Enamul Haque, Executive Director of Concord Real Estate & Development Ltd., Md. Hasen Ali, Managing Director of Hasen Jute Industries Ltd., Mr. Md. Farukul Islam Shova, Chairman of Ahmed Trade International, Mr. Khan Md. Iqbal, Chairman & Managing Director of Alvi Group, Mr. Sudhir Chowdhury, Managing Director of Chowdhury Food & Feed Agro Industries Ltd. and Mr. Md. Razib Pervez, Proprietor of Roadmap Enterprise.
CIS-Bangladesh Chamber of Commerce and Industry works for trade expansion between Bangladesh and CIS countries including Russia.
The chamber regularly participates in SPIEF, the biggest economic conference under the initiative of the Russian government, held in St. Petersburg every year. The chamber is trying to explore the Russian and CIS market as a 3rd front of export destination after the US and EU, said a press release.
BB bans transactions with Onpassive MLM company
The Bangladesh Bank has issued a directive urging individuals to refrain from aiding investments or engaging in transactions with the fraudulent organisation 'Onpassive’ due to its alleged involvement in money embezzlement.
The central bank issued a notification on Thursday in this regard and sent it to top executives of all the scheduled banks to warn people.
As per the notification, Bangladesh has witnessed fraudulent activities conducted by numerous Multi-Level Marketing (MLM) entities. These organisations have allegedly misappropriated substantial sums from the public. The central bank has taken notice of the ‘Onpassive’ incident.
The notification from the BB highlighted the recent operations of an MLM company called Onpassive (www.onpassive.com) in Bangladesh. Investing in this company is considered a fraudulent offence under the Prevention of Money Laundering Act, 2012.
The central bank advised all to refrain from investing, trading, facilitating transactions, and promoting such fraudulent ‘Ponzi schemes.
Bangladesh Bank hopes reserves will reach $21 billion in December
Bangladesh's foreign exchange reserves will increase by $ 1.31 billion in December thanks to foreign loan, according to the Bangladesh Bank (BB).
Mezbaul Haque, executive director and spokesperson of the BB, in a briefing on Wednesday said the reserve is expected to reach $ 21 billion as per the IMF formula in December as Bangladesh received $690 million from IMF, $400 million from the Asian Development Bank, $90 million from South Korea and an additional $130 million from other sources.
Also read: IMF sets conditions for second tranche of $690 million in loan
As of December 6 this year, Bangladesh's forex reserves stood at $19.13 billion as per the IMF formula.
In this regard, former senior economist of the IMF Ahsan H. Mansur told UNB that in the short run, this loan money will give some relief in foreign exchange supply.
Also read: Rural bank deposits down by 22.56 percent: Bangladesh Bank
But in the long term, the government has to focus on sustainable policy in foreign exchange earnings through remittances and exports of goods, he said.
He also emphasised flexible exchange rates which will help to prevent money laundering and trade-based capital flight.
Also read: $1.08 billion could be added to Bangladesh’s dwindling forex reserves
IMF sets conditions for second tranche of $690 million in loan
The International Monetary Fund (IMF) has given a number of suggestions during the approval of releasing the second tranche of $690 million of a $4.7 l-billion loan for Bangladesh.
The IMF suggested a cautious monetary policy to restore macroeconomic stability in the short term. Along with this, the global lender has said to be more flexible fiscal policy in the currency exchange rate as a support of the policy.
Also read: Second tranche of $4.7bn loan for Bangladesh gains IMF Board's approval
The IMF suggested taking these measures along with increasing resilience to external shocks.
The IMF has appreciated the Bangladesh Bank's initiative to modernise the monetary policy framework further.
“If monetary policy is modern, it will reduce inflation and strengthen the effect of central bank policy in various areas,” the IMF commented in the meeting.
“Praising the currency's decision to adopt a single exchange rate, the IMF insisted on more flexibility gradually. They think it is necessary to deal with external shocks in the economy,” said the IMF.
Also read: Bangladesh Bank expects 2nd part of IMF loan in December
However, among the $690 million, nearly $468.3 million will be given under the ECF/EFF arrangement and $221.5 million under the RSF arrangement.
The ECF/EFF and RSF arrangements count $4.7 billion for Bangladesh, approved by the executive board on January 30, 2023. The first tranche count of $476 million was made available in February 2023.
“The ECF/EFF arrangement has helped restore macroeconomic stability and prevent disruptive adjustments to protect the vulnerable while laying the foundations for strong, inclusive, and environmentally sustainable growth,” the IMF said in a release on Wednesday.
Also read: Staff-level agreement reached with IMF for next tranche of $4.7 bn loan
The concurrent RSF arrangement has supplemented the resources made available under the ECF/EFF. IMF said this fund will help catalyse additional financing and build resilience against long-term climate risks.
Bangladesh now boasts 206 LEED-certified green factories: BGMEA
Bangladesh has achieved remarkable progress in sustainable fashion, boasting 206 LEED-certified green factories. This impressive lineup includes 76 platinum-rated and 116 gold-rated facilities, underscoring the country’s strong commitment to environmental stewardship.
In just the past six months, this growth has been especially notable with the addition of 24 new factories, comprising 16 platinum and 8 gold certifications. Mohiuddin Rubel, Director of BGMEA and Managing Director of Bangladesh Apparel Exchange, and Additional Managing Director of Denim Expert Ltd., highlighted this expansion. He emphasized Bangladesh’s critical role in leading the global market towards more eco-friendly garment production.
BGMEA urges Epic Group to invest in high-end apparel development in Bangladesh
Rubel further pointed out the importance of this commitment to sustainability, not just for commendation but also for the enduring success and viability of the industry.
A significant marker of this achievement is that 54 of the top 100 LEED green factories globally are now in Bangladesh. This includes 9 out of the top 10, and 18 of the top 20, a milestone that is likely to draw more investment and partnerships. This positions Bangladesh as a formidable global leader in sustainable manufacturing.
BGMEA, H&M Group discuss collaboration to further strengthen partnership with Bangladesh
The surge in LEED-certified green factories in Bangladesh reflects the garment industry’s steadfast dedication to environmental sustainability, Rubel added.
No legitimate grounds to warrant economic sanctions against Bangladesh: BGMEA
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