In the current hunt for savings in the health care system by developed
countries like the United States, one idea sounds simple: Just get
doctors to quit ordering unnecessary procedures and tests. An
article published on the US business news web site, NPR, says
evidence suggests that some doctors dole out more treatment, and yet
their patients don't fare better. If you talk to doctors, though,
the idea of cutting back starts to sound more complicated. Take, for
example, Drs. Paul Teirstein and Eric Topol. Both are interventional
cardiologists practicing at Scripps Health in San Diego. Yet the two
physicians see their field, and health care in general, from opposite
poles. Teirstein calls Topol a good friend, but says, 'We disagree a
lot. I find him challenging.' Dr. Eric Topol, also a cardiologist,
says doctors have an incentive to use stents more often than
necessary. One of their biggest disagreements concerns stents,
tiny metal tubes that cardiologists use to open clogged arteries and
relieve chest pain. Studies show that cardiologists sometimes use
stents in scenarios where research would indicate they are
unnecessary. Topol says he believes as many as 20 per cent of all
stents aren't really needed. He notes that annually, 1.2 million
patients undergo a stent procedure. 'Undoubtedly, that's more than we
need to do,' he says. Sitting in the same California hospital,
Teirstein says he's not convinced by the research Topol leans on.
Teirstein is an ardent believer in the technology and puts in an
average of seven stents a day. 'I definitely have a bias towards
stents,' he says. 'I have a lot of experience with stents. I've seen
patients do so much better.' It's clear that many patients with
serious blockages in their arteries have benefited greatly from
stents. But a lot depends on the exact type of treatment involved. A
trial called COURAGE — short for Clinical Outcomes Utilizing
Revascularization and Aggressive Drug Evaluation — found that for
patients with ' stable angina,' stents are no better than drugs at
preventing heart attacks or death. Drugs take a while to work,
Teirstein argues, while stents offer an 'instant fix.' After surgery
to receive a stent, patients tend to go home quickly and feel better
almost immediately. Topol counters that cardiologists, like most
doctors, get paid on a fee-for-service basis. The more stent
procedures they do, the more money they make. Topol says that dynamic
has to drive up the number of stent procedures. 'Some of it is
financially motivated, but at a subconscious level,' he says.
Teirstein says income is not the driving factor. 'The physicians I
know do what I do, which is say, 'If this was my mother or father,
what would I do?' Financial incentive is the last thing you think
about,' he says. 'What is inspiring is trying to help a patient.'
If policymakers are to uncover health care savings in curbing
unnecessary procedures, they' ll need doctors to believe that at least
some of what they do is wasteful. As the ongoing conversation
between Teirstein and Topol shows, individual doctors make sense of
the available research differently, as each makes choices for
individual patients. The one thing Topol and Teirstein agree on is
that they want to be able to make those choices. They're fine with
telling each other what to do, even when they don't agree. They just
don't want the government or insurers telling them what to do.
Studying accountancy made easy, MOHUA RAHID, country manager of ACCA BANGLADESH, talks about the routes to success in finance professions
A few years ago the accountant was the book- keeper, called on for an
opinion only when the figures did not add up. Now they are
strategic leaders in companies and public sector bodies. In most
modern businesses around the world, the finance team is the only
group who possess a knowledge of an enterprise in depth and in
breadth to advise on strategic development. And in many companies,
the group finance director is also the group strategy director. In
the business world with vast skill shortages, the finance director, as
much as the HR director, will help to come up with appropriate people
strategies. The role of the financial professional has changed
rapidly – in both big and small businesses. In an environment of
greater globalisation, accountability, transparency, teamwork and
effectiveness, two key criteria emerged. The financial professional
of the future needs to possess both detailed technical accounting
skills and a broad strategic vision. One alone is not enough. And
this is just what the ACCA qualification enables people to become –
financial experts who can transfer their skills to the public or
private sectors, in large or small business, anywhere around the
world. It is almost a year since ACCA [the Association of
Chartered Certified Accountants] opened its office in Bangladesh.
According to ACCA, more people are choosing a career in accountancy
that makes Bangladesh one of the ACCA's fastest-growing markets.
'ACCA is a global organisation with a global qualification. The ACCA
professional qualification provides a common standard throughout the
world. We have 362,000 students and 131,500 members in 170 countries
worldwide,' Mohua Rashid, country manager of ACCA Bangladesh said.
She said studying to be an accountant with ACCA is a success story
in Bangladesh. Taken as part of the Indian sub-continent, the
country, together with Pakistan and India has seen a 26.5 per cent
total increase in member and student numbers from 2007, so more
people in the sub- continent are choosing to become accountants.
But what is the future? Mohua said, 'The sheer speed of business life
has increased rapidly. In the 21st century this means that management
training and development will have to alter drastically.' This is
something ACCA recently discovered as part of its research into
management training, called 'the future of professional development'.
This is the latest report in ACCA's Insight Series, which look at
professional development trends around the world. This new report
talks about what happens after people have qualified in a profession.
Continuing Professional Development, or CPD, often becomes an
integral part of being an ACCA member once qualified. 'We insist
that members undertake regular CPD programmes so they remain up to
date with the work that they do. This is a similar case in a lot of
professions – in law and medicine', she pointed out. According to
the report, if continuing professional development programmes are to
be fit for purpose, keep up with regulatory change and provide
acceptable returns on the millions of cash invested each year, then a
radical overhaul is needed. ACCA believes strongly that the
standard business type lectures cannot survive. Like students,
business professionals need immediate access to good quality
information, and they need to know how to apply it to their work.
Mohua said the one size fits all course will need to be more
practical, and allow for professional peers to network. Time demands
will also have to be met –and this is where the global phenomena of
LinkedIn and Facebook have seen a huge demand – where like minded
people met on line to discuss issues and address work based problems.
'Looking ahead, financial professionals will need faster access to
knowledge and information due to the pace and frequency of
regulatory, economic and business changes', she observed. She adds
that employers around the world also face a challenge to ensure that
development programmes offer enough variety to appeal to all four
generations of workers, from Generation Y – those born in the 1980s
through to Baby Boomers – those born in the 1940s.
opinion only when the figures did not add up. Now they are
strategic leaders in companies and public sector bodies. In most
modern businesses around the world, the finance team is the only
group who possess a knowledge of an enterprise in depth and in
breadth to advise on strategic development. And in many companies,
the group finance director is also the group strategy director. In
the business world with vast skill shortages, the finance director, as
much as the HR director, will help to come up with appropriate people
strategies. The role of the financial professional has changed
rapidly – in both big and small businesses. In an environment of
greater globalisation, accountability, transparency, teamwork and
effectiveness, two key criteria emerged. The financial professional
of the future needs to possess both detailed technical accounting
skills and a broad strategic vision. One alone is not enough. And
this is just what the ACCA qualification enables people to become –
financial experts who can transfer their skills to the public or
private sectors, in large or small business, anywhere around the
world. It is almost a year since ACCA [the Association of
Chartered Certified Accountants] opened its office in Bangladesh.
According to ACCA, more people are choosing a career in accountancy
that makes Bangladesh one of the ACCA's fastest-growing markets.
'ACCA is a global organisation with a global qualification. The ACCA
professional qualification provides a common standard throughout the
world. We have 362,000 students and 131,500 members in 170 countries
worldwide,' Mohua Rashid, country manager of ACCA Bangladesh said.
She said studying to be an accountant with ACCA is a success story
in Bangladesh. Taken as part of the Indian sub-continent, the
country, together with Pakistan and India has seen a 26.5 per cent
total increase in member and student numbers from 2007, so more
people in the sub- continent are choosing to become accountants.
But what is the future? Mohua said, 'The sheer speed of business life
has increased rapidly. In the 21st century this means that management
training and development will have to alter drastically.' This is
something ACCA recently discovered as part of its research into
management training, called 'the future of professional development'.
This is the latest report in ACCA's Insight Series, which look at
professional development trends around the world. This new report
talks about what happens after people have qualified in a profession.
Continuing Professional Development, or CPD, often becomes an
integral part of being an ACCA member once qualified. 'We insist
that members undertake regular CPD programmes so they remain up to
date with the work that they do. This is a similar case in a lot of
professions – in law and medicine', she pointed out. According to
the report, if continuing professional development programmes are to
be fit for purpose, keep up with regulatory change and provide
acceptable returns on the millions of cash invested each year, then a
radical overhaul is needed. ACCA believes strongly that the
standard business type lectures cannot survive. Like students,
business professionals need immediate access to good quality
information, and they need to know how to apply it to their work.
Mohua said the one size fits all course will need to be more
practical, and allow for professional peers to network. Time demands
will also have to be met –and this is where the global phenomena of
LinkedIn and Facebook have seen a huge demand – where like minded
people met on line to discuss issues and address work based problems.
'Looking ahead, financial professionals will need faster access to
knowledge and information due to the pace and frequency of
regulatory, economic and business changes', she observed. She adds
that employers around the world also face a challenge to ensure that
development programmes offer enough variety to appeal to all four
generations of workers, from Generation Y – those born in the 1980s
through to Baby Boomers – those born in the 1940s.
Germany backs calls to limit banker bonuses
Germany Friday threw its weight behind a scheme to limit bonuses for
bankers as part of a drive towards greater financial market
regulation to be debated at a key Group of 20 meeting next month.
'The federal government welcomes the French proposal for an
international initiative on pay in the banking sector,' Klaus Vater,
a spokesman for Chancellor Angela Merkel, told a regular briefing.
'Compensation systems can contribute to systemic risks that can
arise in banks. In Germany, we have already introduced a raft of
measures to reduce excesses in managers' pay,' he added. French
President Nicolas Sarkozy said Wednesday he would call for limits on
bonuses for bank executives when he takes his campaign for greater
regulation to the G20 summit in Pittsburgh on September 24-25.
'We will propose a strengthening of sanctions towards banks that do
not play by the rules and we will even raise the issue of limiting
the size of bonuses,' Sarkozy said in Paris. Responding in a
television interview on Wednesday, Merkel said she was 'annoyed that
in certain banks, everything is starting up again as it was before'
and that the topic would be a ' central theme' at the G20 meeting.
The French plans also received backing from Brussels, with European
Commission President Jose Manuel Barroso on Thursday stressing the
need for 'reinforced ethics.'
bankers as part of a drive towards greater financial market
regulation to be debated at a key Group of 20 meeting next month.
'The federal government welcomes the French proposal for an
international initiative on pay in the banking sector,' Klaus Vater,
a spokesman for Chancellor Angela Merkel, told a regular briefing.
'Compensation systems can contribute to systemic risks that can
arise in banks. In Germany, we have already introduced a raft of
measures to reduce excesses in managers' pay,' he added. French
President Nicolas Sarkozy said Wednesday he would call for limits on
bonuses for bank executives when he takes his campaign for greater
regulation to the G20 summit in Pittsburgh on September 24-25.
'We will propose a strengthening of sanctions towards banks that do
not play by the rules and we will even raise the issue of limiting
the size of bonuses,' Sarkozy said in Paris. Responding in a
television interview on Wednesday, Merkel said she was 'annoyed that
in certain banks, everything is starting up again as it was before'
and that the topic would be a ' central theme' at the G20 meeting.
The French plans also received backing from Brussels, with European
Commission President Jose Manuel Barroso on Thursday stressing the
need for 'reinforced ethics.'
Banks face mounting pressure before G-20
Britain weighed new curbs on banks and a key forum outlined rules to
prevent a replay of the global financial crisis on Thursday as
pressure mounted for more regulation ahead of a G20 summit. The
head of Britain's Financial Services Authority said he would support
moves to raise capital requirements for banks and impose taxes on
financial transactions to cut the bloated banking sector down to
size. 'If you want to stop excessive pay in a swollen financial
sector you have to reduce the size of that sector or apply special
taxes,' Adair Turner, chairman of the FSA, told current affairs
magazine Prospect in an interview. 'Higher capital requirements
against trading activities will be our most powerful tool to
eliminate excessive activity and profits. 'And if increased
capital requirements are insufficient I am happy to consider taxes on
financial transactions,' Turner added. Excessive risk-taking by
banks and traders, resulting in massive bonuses, has been blamed for
helping spark the financial crisis that spiralled after the collapse
of US investment bank Lehman Brothers in September 2008. There
have since been multi-billion dollar government bailouts of world
banks and many economists now emphasise that prospects for any
stable economic recovery are closely linked to a pick-up for the
banking sector. Public anger about bank bonuses and the luxury
lifestyle associated with them has also risen as the fallout from the
economic crisis has become ever more painful, with unemployment
rising sharply in many economies. French President Nicolas Sarkozy
and German Chancellor Angela Merkel have now thrown their weight
behind proposals to impose stricter rules on performance-linked pay
for banks and have urged G20 partners to follow suit. Britain's
FSA earlier this month outlined new rules on bonuses for banking
executives, unveiling a new code of practice that begins in 2010.
EU Commission chief Jose Manuel Barroso on Thursday also said there
should be limits on bonuses and 'reinforced ethics' in the economy,
adding that the the European Union's executive arm would work with
the G20 to achieve this. Bonuses are set to take centre stage at a
meeting of finance ministers from the Group of 20 leading global
economies in London next week, before a G20 summit of world leaders
in September in the US city of Pittsburgh. The Basel Committee on
Banking Supervision, an influential forum based in Switzerland,
meanwhile released plans on Thursday for new bank accounting
standards ahead of the summit in a bid to prevent another crisis.
The plans are meant to ensure that banks are better prepared to deal
with financial risk and the ups and downs of economic cycles, said
the forum, made up of representatives from top industrialised and
emerging economies. In Britain, Turner criticised some activities
of London's financial sector as 'socially useless' and questioned
whether it had grown too large. He also said pay levels in the
sector could be due to 'over-simplistic financial deregulation',
describing this as the 'really fundamental question.'
prevent a replay of the global financial crisis on Thursday as
pressure mounted for more regulation ahead of a G20 summit. The
head of Britain's Financial Services Authority said he would support
moves to raise capital requirements for banks and impose taxes on
financial transactions to cut the bloated banking sector down to
size. 'If you want to stop excessive pay in a swollen financial
sector you have to reduce the size of that sector or apply special
taxes,' Adair Turner, chairman of the FSA, told current affairs
magazine Prospect in an interview. 'Higher capital requirements
against trading activities will be our most powerful tool to
eliminate excessive activity and profits. 'And if increased
capital requirements are insufficient I am happy to consider taxes on
financial transactions,' Turner added. Excessive risk-taking by
banks and traders, resulting in massive bonuses, has been blamed for
helping spark the financial crisis that spiralled after the collapse
of US investment bank Lehman Brothers in September 2008. There
have since been multi-billion dollar government bailouts of world
banks and many economists now emphasise that prospects for any
stable economic recovery are closely linked to a pick-up for the
banking sector. Public anger about bank bonuses and the luxury
lifestyle associated with them has also risen as the fallout from the
economic crisis has become ever more painful, with unemployment
rising sharply in many economies. French President Nicolas Sarkozy
and German Chancellor Angela Merkel have now thrown their weight
behind proposals to impose stricter rules on performance-linked pay
for banks and have urged G20 partners to follow suit. Britain's
FSA earlier this month outlined new rules on bonuses for banking
executives, unveiling a new code of practice that begins in 2010.
EU Commission chief Jose Manuel Barroso on Thursday also said there
should be limits on bonuses and 'reinforced ethics' in the economy,
adding that the the European Union's executive arm would work with
the G20 to achieve this. Bonuses are set to take centre stage at a
meeting of finance ministers from the Group of 20 leading global
economies in London next week, before a G20 summit of world leaders
in September in the US city of Pittsburgh. The Basel Committee on
Banking Supervision, an influential forum based in Switzerland,
meanwhile released plans on Thursday for new bank accounting
standards ahead of the summit in a bid to prevent another crisis.
The plans are meant to ensure that banks are better prepared to deal
with financial risk and the ups and downs of economic cycles, said
the forum, made up of representatives from top industrialised and
emerging economies. In Britain, Turner criticised some activities
of London's financial sector as 'socially useless' and questioned
whether it had grown too large. He also said pay levels in the
sector could be due to 'over-simplistic financial deregulation',
describing this as the 'really fundamental question.'
Hitachi, NEC, Casio in phone nerger talks
Hitachi Ltd., NEC Corp. and Casio Computer Co. are in talks about a
possible merger of their mobile phone businesses in a bid to improve
profitability, reports said Friday. NEC is negotiating to take a
stake of more than 50 percent in Casio Hitachi Mobile Communications
Co., a joint venture which was founded in 2004 by Casio and Hitachi,
Kyodo News reported, citing unnamed sources. Together the three
would have the second- largest share in the Japanese mobile phone
handset market, behind Sharp Corp. The three companies declined to
confirm the report. Most Japanese already own a mobile telephone
and operators and handset manufactures are facing growing challenges
to boost revenue in a crowded market, particularly given the weak
economy and shrinking population.
possible merger of their mobile phone businesses in a bid to improve
profitability, reports said Friday. NEC is negotiating to take a
stake of more than 50 percent in Casio Hitachi Mobile Communications
Co., a joint venture which was founded in 2004 by Casio and Hitachi,
Kyodo News reported, citing unnamed sources. Together the three
would have the second- largest share in the Japanese mobile phone
handset market, behind Sharp Corp. The three companies declined to
confirm the report. Most Japanese already own a mobile telephone
and operators and handset manufactures are facing growing challenges
to boost revenue in a crowded market, particularly given the weak
economy and shrinking population.
Bangladesh Bank prepares sovereign credit rating report to entice FDI
Bangladesh Bank, the central bank, has sought fiscal and economic
data from the finance ministry for preparing a sovereign credit
rating report which should help attract foreign direct investment as
well as boost short- term borrowings for the country's private and
public sectors. The report will help two foreign credit rating
companies appointed by BB to weigh the risks of Bangladesh economy and
the fundamentals of the country's industrial and banking sectors that
should help entice foreign investment into the country, BB sources
said. 'The report is expected to project Bangladesh in a positive
manner for attracting more foreign direct investment in the country,'
said one of the officials who requested anonymity. BB has
requested the finance ministry to provide data including the
non-deposit type of liquid assets and debt servicing performance of
the government, he said. 'Development partners and many foreign
investors consider Bangladesh a risky country… a sound and sovereign
credit rating report will enhance the country's image and help local
financial organisations to tap low-cost borrowings from foreign
sources,' said the official. Bangladesh Bank has formed a contact
team which would keep in touch with the two foreign credit rating
companies—Standard and Poor's and Moody's Singapore Pte Ltd—and
supply them with economic statistics from time to time. BB has
sought statistics on government assets and fiscal history from 1998
to 2008 year as well as planned data for 2009 and projection for
2010. The fiscal data sought for the purpose include breakdown of
revenues, grants and expenditure, transfers of assets of state-owned
enterprises and state-owned banks and debt servicing and detailed
data on government subsides. Bangladesh Bank will pay around Tk 97.3
lakh in the first year and Tk 83.3 lakh in the next year as fees to
the two foreign credit rating companies. Sovereign credit rating
will definitely reduce dependence on the London inter-bank offer rate
and help obtain low-cost funds from foreign sources, former finance
adviser AB Mirza Azizul Islam told New Age. The central bank has
been working since 2007 to prepare a credit rating report for the
country to help mobilise funds from overseas sources and foreign
investment agencies.
data from the finance ministry for preparing a sovereign credit
rating report which should help attract foreign direct investment as
well as boost short- term borrowings for the country's private and
public sectors. The report will help two foreign credit rating
companies appointed by BB to weigh the risks of Bangladesh economy and
the fundamentals of the country's industrial and banking sectors that
should help entice foreign investment into the country, BB sources
said. 'The report is expected to project Bangladesh in a positive
manner for attracting more foreign direct investment in the country,'
said one of the officials who requested anonymity. BB has
requested the finance ministry to provide data including the
non-deposit type of liquid assets and debt servicing performance of
the government, he said. 'Development partners and many foreign
investors consider Bangladesh a risky country… a sound and sovereign
credit rating report will enhance the country's image and help local
financial organisations to tap low-cost borrowings from foreign
sources,' said the official. Bangladesh Bank has formed a contact
team which would keep in touch with the two foreign credit rating
companies—Standard and Poor's and Moody's Singapore Pte Ltd—and
supply them with economic statistics from time to time. BB has
sought statistics on government assets and fiscal history from 1998
to 2008 year as well as planned data for 2009 and projection for
2010. The fiscal data sought for the purpose include breakdown of
revenues, grants and expenditure, transfers of assets of state-owned
enterprises and state-owned banks and debt servicing and detailed
data on government subsides. Bangladesh Bank will pay around Tk 97.3
lakh in the first year and Tk 83.3 lakh in the next year as fees to
the two foreign credit rating companies. Sovereign credit rating
will definitely reduce dependence on the London inter-bank offer rate
and help obtain low-cost funds from foreign sources, former finance
adviser AB Mirza Azizul Islam told New Age. The central bank has
been working since 2007 to prepare a credit rating report for the
country to help mobilise funds from overseas sources and foreign
investment agencies.
Toyota to abandon california plant
Toyota Motor said Friday that it was abandoning a plant in California
that it jointly owned with ailing US giant General Motors, marking
the first time it has pulled the plug on a factory. The move
follows GM's decision in June to drop its ownership stake in the joint
venture, New United Motor Manufacturing Inc, as it restructured
under bankruptcy protection. While a final decision on the fate of
the plant and its 4,700 workers will be left to the NUMMI
management, its closure now looks almost certain. Toyota has never
been involved in shutting an assembly plant anywhere in the world, so
it would be a first for the world's largest automaker. The plant
in Fremont, California will end production for Toyota in March and
shift output of Tacoma pick-ups to a factory in Texas, while
Corollas will be manufactured in Canada and Japan for the North
American market. 'We have determined that over the mid- to
long-term, it just would not be economically viable to continue the
production contract with NUMMI,' said Toyota's North American head,
Atsushi Niimi. 'This is most unfortunate, and we deeply regret
having to take this action,' he added. Toyota cannot promise the
affected workers jobs at its own plants, Niimi said. 'They will
not be prioritised over applicants from the local community' if they
apply for new jobs with Toyota, he told reporters in a
teleconference. Toyota, which overtook US rival GM in 2008 as the
world's largest automaker, is struggling to cut costs after falling
into the red for the first time, with a 436.9 billion yen (4.7
billion dollar) loss in the year to March.
that it jointly owned with ailing US giant General Motors, marking
the first time it has pulled the plug on a factory. The move
follows GM's decision in June to drop its ownership stake in the joint
venture, New United Motor Manufacturing Inc, as it restructured
under bankruptcy protection. While a final decision on the fate of
the plant and its 4,700 workers will be left to the NUMMI
management, its closure now looks almost certain. Toyota has never
been involved in shutting an assembly plant anywhere in the world, so
it would be a first for the world's largest automaker. The plant
in Fremont, California will end production for Toyota in March and
shift output of Tacoma pick-ups to a factory in Texas, while
Corollas will be manufactured in Canada and Japan for the North
American market. 'We have determined that over the mid- to
long-term, it just would not be economically viable to continue the
production contract with NUMMI,' said Toyota's North American head,
Atsushi Niimi. 'This is most unfortunate, and we deeply regret
having to take this action,' he added. Toyota cannot promise the
affected workers jobs at its own plants, Niimi said. 'They will
not be prioritised over applicants from the local community' if they
apply for new jobs with Toyota, he told reporters in a
teleconference. Toyota, which overtook US rival GM in 2008 as the
world's largest automaker, is struggling to cut costs after falling
into the red for the first time, with a 436.9 billion yen (4.7
billion dollar) loss in the year to March.
Bangladesh Biman resumes loss making New York flights in october
Biman Bangladesh has decided to resume its Dhaka-New York flight in
the first week of October, three years after it discarded the route
from its schedule to avoid big losses. 'Biman is planning to
operate two flights a week on the Dhaka-New York route…The
authorities have started preparing for the operations,' civil
aviation and tourism minister GM Quader told New Age at his office on
Thursday. The US authorities have agreed to provide Biman slots
[permission for landings and takeoffs] from October, he informed.
The national flag carrier suspended Dhaka- New York flight on July 29,
2006 amid perennial financial losses and serious shortage of planes.
According to an estimate of the airlines, a single Dhaka-New York
flight by DC-10 cost Biman a loss of Tk 55 lakh. A fresh move was
on to arrange new generation aircraft on lease for the national
airlines to operate flights on the route, the minister said, adding
that resumption of Dhaka- New York flight was a political commitment
of the Awami League-led government. Flights on other international
routes, which the national carrier had to suspend for aircraft
shortage, would also resume with addition of new aircrafts to its
fleet. The Biman board has directed the authorities concerned for
fresh initiatives to take new generation aircraft on lease. 'Biman
is going to take four aircraft on lease. The board has stopped the
ongoing process to arrange three Boeing 777 ERs on lease to avail of
a better offer and ensure transparency,' the civil aviation minister
said. An international tender would be floated soon to complete
the leasing process within a month. US plane maker Boeing earlier
proposed that it would deliver two wide-bodied aircraft to Biman two
years ahead of the schedule. According to a 2008 agreement with
Biman, Boeing was to supply four Boeing-777 planes by December 2013.
Biman signed contracts for 10 new generation aircraft, including
four 777-300ERs (extended range), four 787-8 dreamliners and two 737-
800s. Owing to aircraft shortage, Biman had to trim its flight on
a number of international routes in past few years. Apart from New
York, it also stopped flying to and from Frankfurt, Paris and Tokyo.
The list grew longer with recent suspension of Dhaka-Delhi and
Dhaka-Bangkok flights, reducing Biman's international destinations to
16. Also, it has reduced flight frequencies on global routes.
Biman currently has four DC 10-30s, two Airbus A310-300s and two
Fokker F-28s in all and a number of the aircraft often go out of
service due to technical faults.
the first week of October, three years after it discarded the route
from its schedule to avoid big losses. 'Biman is planning to
operate two flights a week on the Dhaka-New York route…The
authorities have started preparing for the operations,' civil
aviation and tourism minister GM Quader told New Age at his office on
Thursday. The US authorities have agreed to provide Biman slots
[permission for landings and takeoffs] from October, he informed.
The national flag carrier suspended Dhaka- New York flight on July 29,
2006 amid perennial financial losses and serious shortage of planes.
According to an estimate of the airlines, a single Dhaka-New York
flight by DC-10 cost Biman a loss of Tk 55 lakh. A fresh move was
on to arrange new generation aircraft on lease for the national
airlines to operate flights on the route, the minister said, adding
that resumption of Dhaka- New York flight was a political commitment
of the Awami League-led government. Flights on other international
routes, which the national carrier had to suspend for aircraft
shortage, would also resume with addition of new aircrafts to its
fleet. The Biman board has directed the authorities concerned for
fresh initiatives to take new generation aircraft on lease. 'Biman
is going to take four aircraft on lease. The board has stopped the
ongoing process to arrange three Boeing 777 ERs on lease to avail of
a better offer and ensure transparency,' the civil aviation minister
said. An international tender would be floated soon to complete
the leasing process within a month. US plane maker Boeing earlier
proposed that it would deliver two wide-bodied aircraft to Biman two
years ahead of the schedule. According to a 2008 agreement with
Biman, Boeing was to supply four Boeing-777 planes by December 2013.
Biman signed contracts for 10 new generation aircraft, including
four 777-300ERs (extended range), four 787-8 dreamliners and two 737-
800s. Owing to aircraft shortage, Biman had to trim its flight on
a number of international routes in past few years. Apart from New
York, it also stopped flying to and from Frankfurt, Paris and Tokyo.
The list grew longer with recent suspension of Dhaka-Delhi and
Dhaka-Bangkok flights, reducing Biman's international destinations to
16. Also, it has reduced flight frequencies on global routes.
Biman currently has four DC 10-30s, two Airbus A310-300s and two
Fokker F-28s in all and a number of the aircraft often go out of
service due to technical faults.
Currency ceiling for out bound travellers increased
Bangladesh Bank has raised the ceiling of local currency for
Bangladeshi people going abroad, brining necessary changes to a
decade-old rule. According to a recent BB circular, any
Bangladeshi can now carry Tk 2,000 while travelling overseas.
Earlier, none was allowed to carry more than Tk 500 as per the rules
of the central bank, implemented in 1949. A Bangladesh Bank
official said the limit of allowable local currency had been
increased so that people could have sufficient money to get home on
their return from overseas.
Bangladeshi people going abroad, brining necessary changes to a
decade-old rule. According to a recent BB circular, any
Bangladeshi can now carry Tk 2,000 while travelling overseas.
Earlier, none was allowed to carry more than Tk 500 as per the rules
of the central bank, implemented in 1949. A Bangladesh Bank
official said the limit of allowable local currency had been
increased so that people could have sufficient money to get home on
their return from overseas.
Emitrates arranger iftar for passengers
Emirates, international airline of the United Arab Emirates, has
taken a number of steps to ensure that all fasting customers are well
taken care of during the fasting month of Ramadan. For flights
departing close to iftar Emirates will provide small snack boxes at
the boarding gates of Dubai International Airport, Terminal 3. The
snack boxes, containing baklawa, dates, a laban drink and water, will
serve as a quick snack so that passengers can break their fast
immediately, a news release said. Specially-prepared large iftar
meal boxes will be served to fasting passengers in-flight and they
will comprise an assortment of traditional Arabic delicacies
including a hot chicken shawarma, crudités, Arabic bread, pistachio,
maamoul, a banana, dates, water and a laban drink. The mill box will
be served in economy class with a similar selection of foods served
to fasting passengers in both business and first class, the release
said. Non-fasting passengers travelling on Umrah and Jeddah
flights will receive a cold meal instead of the regular hot meal for
all flights taking off after sunrise and before sunset, in respect
to the many Muslim passengers completing Umrah on these flights, the
release said.
taken a number of steps to ensure that all fasting customers are well
taken care of during the fasting month of Ramadan. For flights
departing close to iftar Emirates will provide small snack boxes at
the boarding gates of Dubai International Airport, Terminal 3. The
snack boxes, containing baklawa, dates, a laban drink and water, will
serve as a quick snack so that passengers can break their fast
immediately, a news release said. Specially-prepared large iftar
meal boxes will be served to fasting passengers in-flight and they
will comprise an assortment of traditional Arabic delicacies
including a hot chicken shawarma, crudités, Arabic bread, pistachio,
maamoul, a banana, dates, water and a laban drink. The mill box will
be served in economy class with a similar selection of foods served
to fasting passengers in both business and first class, the release
said. Non-fasting passengers travelling on Umrah and Jeddah
flights will receive a cold meal instead of the regular hot meal for
all flights taking off after sunrise and before sunset, in respect
to the many Muslim passengers completing Umrah on these flights, the
release said.
Dhaka to get $500 millioo stimulus fund from ADB
Bangladesh will get a $500 million loan from the Asian Development
Bank to counter the second round of global economic meltdown, a
senior official said on Monday. 'The hard-term loan will be
utilised for weathering the impact of the global economic crisis,'
said Musharraf Hossain Bhuiyan, secretary of the economic relation
division of ministry of finance. 'We have accepted the proposed
loan as the country has already been affected by the second round
impact of the global economic recession,' he told Reuters. An
official of the ADB said the $500 million credit has to be repaid
within five years with a three-year grace period and the LIBOR
(London inter bank offered rate) based interest rate will be
around 2.8 per cent. The ADB already confirmed giving $500 million
to the government from its 'Counter-Cyclical Support Facility Fund'
to face the adverse impact of the global economic recession on
Bangladesh's economy. He said the government might utilise part of
the fund to support the export sectors, which had been hard hit by
the global economic recession. Bangladesh's exports grew 10.3 per
cent to $15.56 billion in the 2008/09 fiscal year that ended in
June, the lowest growth in six years, data showed, reflecting slowing
demand as a result of the global economic slump. In the current
fiscal year's budget the government has a target of $350 million as
budget-support credit from different donors to minimise the fiscal
deficit.
Bank to counter the second round of global economic meltdown, a
senior official said on Monday. 'The hard-term loan will be
utilised for weathering the impact of the global economic crisis,'
said Musharraf Hossain Bhuiyan, secretary of the economic relation
division of ministry of finance. 'We have accepted the proposed
loan as the country has already been affected by the second round
impact of the global economic recession,' he told Reuters. An
official of the ADB said the $500 million credit has to be repaid
within five years with a three-year grace period and the LIBOR
(London inter bank offered rate) based interest rate will be
around 2.8 per cent. The ADB already confirmed giving $500 million
to the government from its 'Counter-Cyclical Support Facility Fund'
to face the adverse impact of the global economic recession on
Bangladesh's economy. He said the government might utilise part of
the fund to support the export sectors, which had been hard hit by
the global economic recession. Bangladesh's exports grew 10.3 per
cent to $15.56 billion in the 2008/09 fiscal year that ended in
June, the lowest growth in six years, data showed, reflecting slowing
demand as a result of the global economic slump. In the current
fiscal year's budget the government has a target of $350 million as
budget-support credit from different donors to minimise the fiscal
deficit.
SONY ERICSSON w995 wins EISA awards
W 995, one of the latest editions of the walkman family of Sony
Ericsson, has recently won the EISA Awards. The handset has won the
award for the Best Product on the category of ' European Music Phone
2009-2010', a news release said. Internationally known for the
European EISA Awards, EISA started its journey in 1982. EISA ('
European Imaging and Sound Association') is the unique association of
50 special interest magazines from 19 European countries where
editors-in-chief of these magazines selects the winners of each
category. The W995 is the ultimate in Mobile Entertainment. This
device targets the multimedia enthusiasts by making it easy to
access and playback audio and video media. The W995 is featuring a
2.6 inch display of 240x320 pixels resolution. The phone includes a
music player, Walkman v4.0, with shake control, mini jack input for
favorite earphones and Wi-Fi, the release said. This phone is now
available in Bangladesh at the price of Tk 45,500.
Ericsson, has recently won the EISA Awards. The handset has won the
award for the Best Product on the category of ' European Music Phone
2009-2010', a news release said. Internationally known for the
European EISA Awards, EISA started its journey in 1982. EISA ('
European Imaging and Sound Association') is the unique association of
50 special interest magazines from 19 European countries where
editors-in-chief of these magazines selects the winners of each
category. The W995 is the ultimate in Mobile Entertainment. This
device targets the multimedia enthusiasts by making it easy to
access and playback audio and video media. The W995 is featuring a
2.6 inch display of 240x320 pixels resolution. The phone includes a
music player, Walkman v4.0, with shake control, mini jack input for
favorite earphones and Wi-Fi, the release said. This phone is now
available in Bangladesh at the price of Tk 45,500.
Stanchart offers discount for RAMADAN
Standard Chartered has once again brought the ' Great Discount Offer'
for all its debit and credit cardholders to celebrate the great
festivity of Eid-ul-Fitr. This time 25 renowned brands, with a large
number of outlets across the country, are participating in the
discount campaign, a news release said. The bank's customers will
enjoy an upfront discount of up to 12 per cent simply by using their
Standard Chartered debit or credit card at the partner outlets for
Eid Shopping throughout the month of Ramadan. In his comments,
Sandeep Bose, head of consumer banking of Standard Chartered
Bangladesh, said, 'Our customers are at the centre of all our
activities. As Eid is the biggest festival in the country, we have
launched the ' Great Discount Offer' for our debit and credit
cardholders to add more colour to their celebration.'
for all its debit and credit cardholders to celebrate the great
festivity of Eid-ul-Fitr. This time 25 renowned brands, with a large
number of outlets across the country, are participating in the
discount campaign, a news release said. The bank's customers will
enjoy an upfront discount of up to 12 per cent simply by using their
Standard Chartered debit or credit card at the partner outlets for
Eid Shopping throughout the month of Ramadan. In his comments,
Sandeep Bose, head of consumer banking of Standard Chartered
Bangladesh, said, 'Our customers are at the centre of all our
activities. As Eid is the biggest festival in the country, we have
launched the ' Great Discount Offer' for our debit and credit
cardholders to add more colour to their celebration.'
Dollar down againrt yen ASIA
The dollar fell against the yen in Asian trade on Tuesday as market
players waited to see whether the next batch of US economic data
will support recent optimism, dealers said. The dollar eased to
93.97 yen in Tokyo afternoon trade, down from 94.56 in New York late
Monday. The euro slipped to 1.4293 dollars after 1.4300 and to 134.33
yen from 135.25. The yen rose as a rally on global stock markets
faltered, dampening demand for risk-sensitive currencies. The
market now wants to see US economic data, especially the consumer
confidence index for August, to be released later Tuesday, said
Resona Bank currency analyst Shigeru Nakane. 'Now that the housing
market has bottomed out and that a correction in manufacturing is
coming to an end, we want to know how consumer spending and
employment are faring,' Nakane said. Against Asian currencies, the
dollar rose to 1. 4417 Singapore dollars from 1.4393 on Monday, to
1,247.00 South Korean won from 1,240.00, to 32.88 Taiwan dollars from
32.84 and to 48.57 Philippine pesos from 48.37. At the same time
it edged down to 9,980.00 Indonesian rupiah from 9,985.00, while
holding steady at 34.00 Thai baht.
players waited to see whether the next batch of US economic data
will support recent optimism, dealers said. The dollar eased to
93.97 yen in Tokyo afternoon trade, down from 94.56 in New York late
Monday. The euro slipped to 1.4293 dollars after 1.4300 and to 134.33
yen from 135.25. The yen rose as a rally on global stock markets
faltered, dampening demand for risk-sensitive currencies. The
market now wants to see US economic data, especially the consumer
confidence index for August, to be released later Tuesday, said
Resona Bank currency analyst Shigeru Nakane. 'Now that the housing
market has bottomed out and that a correction in manufacturing is
coming to an end, we want to know how consumer spending and
employment are faring,' Nakane said. Against Asian currencies, the
dollar rose to 1. 4417 Singapore dollars from 1.4393 on Monday, to
1,247.00 South Korean won from 1,240.00, to 32.88 Taiwan dollars from
32.84 and to 48.57 Philippine pesos from 48.37. At the same time
it edged down to 9,980.00 Indonesian rupiah from 9,985.00, while
holding steady at 34.00 Thai baht.
IS panel advises reopening of 2 closed jute mills
A parliamentary panel on Tuesday suggested immediate reopening of two
of the five closed jute mills to save the ailing jute sector. The
parliamentary standing committee on the textile and jute ministry at
a meeting suggested that the Qaumi Jute Mills in Sirajganj and
Daulatpur Jute Mills in Khulna should be reopened for the good of the
jute industry and welfare of people working in the sector. Five of
the 27 state-owned jute mills run by the Bangladesh Jute Mills
Corporation have been closed for years and the Awami League
government earlier pledged to reopen all of them. The meeting,
presided over by the committee chairman, Akhteruzzaman Chowdhury, was
informed that the second unit of the closed Adamjee Jute Mills was
expected to be reopened by year-end. Adamjee was shut during the
previous Bangladesh Nationalist Party-led government in 2002 because
of its accumulated losses. Referring to the closure of the Adamjee
Jute Mills, the committee chairman blamed the BNP- led alliance for
destroying the jute sector. It was observed jute industries flourished
in a neighbouring country when such industries in Bangladesh were
shut one after another, he said. 'It was a conspiracy against the
once glorious sector,' Akhteruzzaman said, adding the government has
decided to run all the mills in a meaningful way. The meeting also
discussed progress in jute procurement by the government. It was
also informed the government had allocated Tk 200 crore for jute
purchase, but the authorities gad already procured raw jute worth
about Tk 210 crore. The ministry has sought more funds for raw
jute procurement as the country has a bumper jute yield this year.
of the five closed jute mills to save the ailing jute sector. The
parliamentary standing committee on the textile and jute ministry at
a meeting suggested that the Qaumi Jute Mills in Sirajganj and
Daulatpur Jute Mills in Khulna should be reopened for the good of the
jute industry and welfare of people working in the sector. Five of
the 27 state-owned jute mills run by the Bangladesh Jute Mills
Corporation have been closed for years and the Awami League
government earlier pledged to reopen all of them. The meeting,
presided over by the committee chairman, Akhteruzzaman Chowdhury, was
informed that the second unit of the closed Adamjee Jute Mills was
expected to be reopened by year-end. Adamjee was shut during the
previous Bangladesh Nationalist Party-led government in 2002 because
of its accumulated losses. Referring to the closure of the Adamjee
Jute Mills, the committee chairman blamed the BNP- led alliance for
destroying the jute sector. It was observed jute industries flourished
in a neighbouring country when such industries in Bangladesh were
shut one after another, he said. 'It was a conspiracy against the
once glorious sector,' Akhteruzzaman said, adding the government has
decided to run all the mills in a meaningful way. The meeting also
discussed progress in jute procurement by the government. It was
also informed the government had allocated Tk 200 crore for jute
purchase, but the authorities gad already procured raw jute worth
about Tk 210 crore. The ministry has sought more funds for raw
jute procurement as the country has a bumper jute yield this year.
Reader's digest files for bankruptey protection
Reader's Digest Association Inc, publisher of the iconic general
interest magazine that began gracing American homes in 1922 and now
reaches a worldwide audience of 130 million, filed for Chapter 11
bankruptcy protection Monday as it faces falling print circulation in
the Internet age and looming debt payments. Known for its
heart-warming stories about American life as other publications moved
toward edgier fare, the company's flagship Reader's Digest magazine
has seen its US circulation drop from a peak of more than 17 million
in the 1970s to just above 8 million last year. Magnifying the
publishing world's woes is an advertising slump that already has led
to the closing of several high-profile magazines, including Conde
Nast's Portfolio, Domino and Blender. But Reader's Digest CEO Mary
Berner has said that ad pages for the company's US magazines are
down less than 6 per cent through the September editions. The
publications' down- home feel instead of a high reliance on luxury
and high-income tastes has an added attraction to advertisers in a
recession that has hurt much of print media. She noted that the
company had several successful ventures, such as the magazine
Everyday with Rachael Ray and cooking site AllRecipes.com. Berner,
however, cited problems with two underperforming properties the
company agreed to sell last year: Books Are Fun Ltd, a company that
sells books at events and book fairs, and QSP, which assists with
fundraising for schools and youth groups. Still, weakness in ads,
lower circulation and a mountain of debt created a perfect storm that
led to the prearranged bankruptcy filing of the privately held
company. The filing had been expected after the company said last
week it had reached an agreement with a majority of lenders.
Reader's Digest said the prearranged bankruptcy filing, which only
affects US operations, would give lenders a 92.5 per cent ownership
stake in exchange for lowering its indebtedness to $550 million from
$2.2 billion. The filing has gotten the approval of more than 80 per
cent of the company's senior secured lenders, critical for a quicker
exit from bankruptcy protection. The publisher expects to emerge
from bankruptcy protection 45 to 90 days after the filing, which was
made at the US Bankruptcy Court in New York. The company piled on
debt following a $1.6 billion leveraged buyout in 2007 by investors
led by Ripplewood Holdings LLC, a New York private equity firm, to
take Reader's Digest private. In such a transaction, investors
typically borrow heavily to acquire a company, betting that
operations would generate enough cash to cover the debt payments.
But signs of trouble have since emerged. In June, Reader's Digest
magazine cut its circulation guarantee to advertisers to 5.5 million
from 8 million, and lowered its frequency to 10 issues a year from
12. Reader's Digest went public in 1990 and was controlled by a
charitable foundation set up by the company's founders, DeWitt and
Lila Wallace. The company bought out the foundation's shares in
2002. Ripplewood and other investors stepped in five years later.
In the Chapter 11 filing, the company's senior secured lenders have
committed $150 million in new debtor-in-possession financing that can
be converted into exit financing once Reader's Digest leaves
bankruptcy protection. The publisher said the financing should give
it ample liquidity for its restructuring. Its international
operations are expected to run on existing funds from continuing
operations and proceeds from the debtor-in-possession financing. The
company said most of its suppliers will be paid in full under the
bankruptcy plan. All of the company's board members who have served
since Ripplewood's acquisition have resigned, aside from Berner. Two
members who recently joined will continue to serve. Pleasantville,
NY-based Reader's Digest publishes 94 magazines and sells about 40
million books, music and video products each year. Reader's Digest
magazine has 50 editions worldwide, reaching readers in 78 countries.
interest magazine that began gracing American homes in 1922 and now
reaches a worldwide audience of 130 million, filed for Chapter 11
bankruptcy protection Monday as it faces falling print circulation in
the Internet age and looming debt payments. Known for its
heart-warming stories about American life as other publications moved
toward edgier fare, the company's flagship Reader's Digest magazine
has seen its US circulation drop from a peak of more than 17 million
in the 1970s to just above 8 million last year. Magnifying the
publishing world's woes is an advertising slump that already has led
to the closing of several high-profile magazines, including Conde
Nast's Portfolio, Domino and Blender. But Reader's Digest CEO Mary
Berner has said that ad pages for the company's US magazines are
down less than 6 per cent through the September editions. The
publications' down- home feel instead of a high reliance on luxury
and high-income tastes has an added attraction to advertisers in a
recession that has hurt much of print media. She noted that the
company had several successful ventures, such as the magazine
Everyday with Rachael Ray and cooking site AllRecipes.com. Berner,
however, cited problems with two underperforming properties the
company agreed to sell last year: Books Are Fun Ltd, a company that
sells books at events and book fairs, and QSP, which assists with
fundraising for schools and youth groups. Still, weakness in ads,
lower circulation and a mountain of debt created a perfect storm that
led to the prearranged bankruptcy filing of the privately held
company. The filing had been expected after the company said last
week it had reached an agreement with a majority of lenders.
Reader's Digest said the prearranged bankruptcy filing, which only
affects US operations, would give lenders a 92.5 per cent ownership
stake in exchange for lowering its indebtedness to $550 million from
$2.2 billion. The filing has gotten the approval of more than 80 per
cent of the company's senior secured lenders, critical for a quicker
exit from bankruptcy protection. The publisher expects to emerge
from bankruptcy protection 45 to 90 days after the filing, which was
made at the US Bankruptcy Court in New York. The company piled on
debt following a $1.6 billion leveraged buyout in 2007 by investors
led by Ripplewood Holdings LLC, a New York private equity firm, to
take Reader's Digest private. In such a transaction, investors
typically borrow heavily to acquire a company, betting that
operations would generate enough cash to cover the debt payments.
But signs of trouble have since emerged. In June, Reader's Digest
magazine cut its circulation guarantee to advertisers to 5.5 million
from 8 million, and lowered its frequency to 10 issues a year from
12. Reader's Digest went public in 1990 and was controlled by a
charitable foundation set up by the company's founders, DeWitt and
Lila Wallace. The company bought out the foundation's shares in
2002. Ripplewood and other investors stepped in five years later.
In the Chapter 11 filing, the company's senior secured lenders have
committed $150 million in new debtor-in-possession financing that can
be converted into exit financing once Reader's Digest leaves
bankruptcy protection. The publisher said the financing should give
it ample liquidity for its restructuring. Its international
operations are expected to run on existing funds from continuing
operations and proceeds from the debtor-in-possession financing. The
company said most of its suppliers will be paid in full under the
bankruptcy plan. All of the company's board members who have served
since Ripplewood's acquisition have resigned, aside from Berner. Two
members who recently joined will continue to serve. Pleasantville,
NY-based Reader's Digest publishes 94 magazines and sells about 40
million books, music and video products each year. Reader's Digest
magazine has 50 editions worldwide, reaching readers in 78 countries.
Shipbuilders may get soft loans
Bangladesh Bank, central bank of the country, should introduce
refinancing at a lower rate by the government for industrial loan to
set up shipbuilding industry as well as its working capital, a
government committee has recommended in its report. The committee,
led by Director General of Export Promotion Bureau Md Khalilur
Rahman, was formed to submit report on problems and prospects of the
shipbuilding industry. The report was recently submitted to the
ministry concerned. The report suggested that the single borrower
exposure limit of commercial banks should be increased to 65 per cent
for non-funded facilities from the existing 35 per cent. According
to the present system, single borrower exposure limit of commercial
banks has been fixed at 50 per cent (funded 15 per cent and
non-funded 35 per cent) of the total capital. 'This is not
sufficient for shipbuilding sector in extending non-funded
facilities. It should be increased to 65 per cent for non funded
facilities for investment in the shipbuilding sector,' the report
said. The report made its recommendations in four parts — financial,
human resource development, infrastructure and marketing. In the
financial part, it recommended that the limit of government deposit
in private commercial banks has to be increased from present 25 per
cent to 50 per cent and that should be earmarked for investment in
shipbuilding sector. It also mentioned that commission for import
L/Cs has to be fixed at 0.25 per cent per three months. The
committee also suggested 10 per cent interest for industrial loan
while 7 per cent interest for working capital loan with nil margin
for bank guarantee and nil L/C margin for 100 per cent export
oriented shipbuilding industry. To avoid issuing counter bank
guarantee by a foreign bank as the bank guarantee issued by the
local banks is not accepted by the buyer's bank, the committee
suggested that Bangladesh bank could maintain a record of such
guarantees issued by local banks with cross reference to each other.
In the human resource development part, the committee suggested to
form a committee by the government with the members of marine
engineering department of universities, technical institutions,
concerned association and ship exporting companies to review the
course curriculum every two years and prepare a need basis syllabus.
The report also suggested making necessary arrangement for opening
naval architecture and marine engineering department in the
universities of Khulna, Chittagong and Barisal regions. In the
infrastructure part, the committee suggested to establish a special
zone having technical and geographical facilities including deep
channel, 200+ meter height of bridges on the rivers and uninterrupted
electricity and gas supply for 100 per cent export oriented
shipbuilding industries.
refinancing at a lower rate by the government for industrial loan to
set up shipbuilding industry as well as its working capital, a
government committee has recommended in its report. The committee,
led by Director General of Export Promotion Bureau Md Khalilur
Rahman, was formed to submit report on problems and prospects of the
shipbuilding industry. The report was recently submitted to the
ministry concerned. The report suggested that the single borrower
exposure limit of commercial banks should be increased to 65 per cent
for non-funded facilities from the existing 35 per cent. According
to the present system, single borrower exposure limit of commercial
banks has been fixed at 50 per cent (funded 15 per cent and
non-funded 35 per cent) of the total capital. 'This is not
sufficient for shipbuilding sector in extending non-funded
facilities. It should be increased to 65 per cent for non funded
facilities for investment in the shipbuilding sector,' the report
said. The report made its recommendations in four parts — financial,
human resource development, infrastructure and marketing. In the
financial part, it recommended that the limit of government deposit
in private commercial banks has to be increased from present 25 per
cent to 50 per cent and that should be earmarked for investment in
shipbuilding sector. It also mentioned that commission for import
L/Cs has to be fixed at 0.25 per cent per three months. The
committee also suggested 10 per cent interest for industrial loan
while 7 per cent interest for working capital loan with nil margin
for bank guarantee and nil L/C margin for 100 per cent export
oriented shipbuilding industry. To avoid issuing counter bank
guarantee by a foreign bank as the bank guarantee issued by the
local banks is not accepted by the buyer's bank, the committee
suggested that Bangladesh bank could maintain a record of such
guarantees issued by local banks with cross reference to each other.
In the human resource development part, the committee suggested to
form a committee by the government with the members of marine
engineering department of universities, technical institutions,
concerned association and ship exporting companies to review the
course curriculum every two years and prepare a need basis syllabus.
The report also suggested making necessary arrangement for opening
naval architecture and marine engineering department in the
universities of Khulna, Chittagong and Barisal regions. In the
infrastructure part, the committee suggested to establish a special
zone having technical and geographical facilities including deep
channel, 200+ meter height of bridges on the rivers and uninterrupted
electricity and gas supply for 100 per cent export oriented
shipbuilding industries.
Claim start pumping INDIA oil
Cairn Energy, the Scottish exploration group, said on Tuesday it
would begin pumping its first oil from a huge field in western India
this week, a decade after taking a gamble on the area. 'We are
delighted that production from Mangala (oil field) in Rajasthan is
due to commence this week,' Cairn chief executive Bill Gammell said
in a statement. 'This is a major milestone for the Cairn Group.'
Edinburgh-based Cairn aims to pump 1,75,000 barrels per day (bpd) —
the equivalent of close to 25 per cent of India's current oil output
— from its fields in the desert state of Rajasthan by 2011. Some
industry experts believe that figure could climb to at least 2,05,000
bpd. The company plans to pump 30,000 bpd initially. The new
fields — from which Cairn expects to extract one billion barrels over
40 years — are important as India imports 70 per cent of its oil
needs, putting it among the top ten oil importers globally.
Gammell, a former Scottish rugby star, took a punt in the late 1990s
when he sold off Cairn's North Sea assets and bet — to the bemusement
of many industry watchers — on Rajasthan, which he believed was
under explored. Rajasthan, better known for its royal palaces and
former princes, had not seen any 'gushers' when Gammell in 1997
started buying the rights to Anglo-Dutch giant Shell's oil blocks in
the state. Shell had drilled 10 holes but had little to show for
it and wanted an exit. It sold its final 50 per cent stake to Cairn
for just 7.25 million dollars in 2002. 'This is a world-class
discovery and the potential production is certainly a good story for
India,' said Deepak Pareek, energy analyst at India's Angel Broking.
With its fast-growing economy, India is expected to become the
world's fourth-largest oil importer by 2025, according to US
government energy data. Cairn's Rajasthan fields will save around
$6.8 billion in foreign exchange payments a year, which represents
around seven per cent of India' s current oil import bill, said
Goldman Sachs. Initial output from the field will be exported by
truck, and full production requires completion of an export pipeline
to the coast in the neighbouring Indian state of Gujarat. This
second phase is scheduled to start up by the end of the year,
although the company suggested this target was increasingly
challenging. The Rajasthan oil, in which India's state-run Oil and
Natural Gas Corp holds a 30 per cent stake, lifted Cairn from
relative obscurity and turned it into a leading explorer listed on the
FTSE-100 index of Britain's biggest companies. Gammell, nicknamed
Scotland's J.R. Ewing after the oil baron in the hit US TV show
Dallas, refused to be discouraged in Rajasthan even when things did
not go right. In 2003, after Cairn had spent $100 million digging
15 wells that turned out to be dry, he insisted the company would
strike 'black gold' in Rajasthan's Thar desert. 'There's no doubt
in my own mind that this will go on to prove itself commercially
viable,' Gammell declared then as shareholder pressure mounted for
the company to give up on India as a costly white elephant.
Gammell's belief was vindicated when Cairn struck oil in 2004 with
its Mangala discovery in remote Barmer district. The announcement
came as Cairn also said it had swung into a loss during the first
half of 2009. Cairn has exploration operations in North Africa
and Greenland, whose icy waters it describes as its next 'huge
opportunity,' but most of its existing value is tied up with India.
would begin pumping its first oil from a huge field in western India
this week, a decade after taking a gamble on the area. 'We are
delighted that production from Mangala (oil field) in Rajasthan is
due to commence this week,' Cairn chief executive Bill Gammell said
in a statement. 'This is a major milestone for the Cairn Group.'
Edinburgh-based Cairn aims to pump 1,75,000 barrels per day (bpd) —
the equivalent of close to 25 per cent of India's current oil output
— from its fields in the desert state of Rajasthan by 2011. Some
industry experts believe that figure could climb to at least 2,05,000
bpd. The company plans to pump 30,000 bpd initially. The new
fields — from which Cairn expects to extract one billion barrels over
40 years — are important as India imports 70 per cent of its oil
needs, putting it among the top ten oil importers globally.
Gammell, a former Scottish rugby star, took a punt in the late 1990s
when he sold off Cairn's North Sea assets and bet — to the bemusement
of many industry watchers — on Rajasthan, which he believed was
under explored. Rajasthan, better known for its royal palaces and
former princes, had not seen any 'gushers' when Gammell in 1997
started buying the rights to Anglo-Dutch giant Shell's oil blocks in
the state. Shell had drilled 10 holes but had little to show for
it and wanted an exit. It sold its final 50 per cent stake to Cairn
for just 7.25 million dollars in 2002. 'This is a world-class
discovery and the potential production is certainly a good story for
India,' said Deepak Pareek, energy analyst at India's Angel Broking.
With its fast-growing economy, India is expected to become the
world's fourth-largest oil importer by 2025, according to US
government energy data. Cairn's Rajasthan fields will save around
$6.8 billion in foreign exchange payments a year, which represents
around seven per cent of India' s current oil import bill, said
Goldman Sachs. Initial output from the field will be exported by
truck, and full production requires completion of an export pipeline
to the coast in the neighbouring Indian state of Gujarat. This
second phase is scheduled to start up by the end of the year,
although the company suggested this target was increasingly
challenging. The Rajasthan oil, in which India's state-run Oil and
Natural Gas Corp holds a 30 per cent stake, lifted Cairn from
relative obscurity and turned it into a leading explorer listed on the
FTSE-100 index of Britain's biggest companies. Gammell, nicknamed
Scotland's J.R. Ewing after the oil baron in the hit US TV show
Dallas, refused to be discouraged in Rajasthan even when things did
not go right. In 2003, after Cairn had spent $100 million digging
15 wells that turned out to be dry, he insisted the company would
strike 'black gold' in Rajasthan's Thar desert. 'There's no doubt
in my own mind that this will go on to prove itself commercially
viable,' Gammell declared then as shareholder pressure mounted for
the company to give up on India as a costly white elephant.
Gammell's belief was vindicated when Cairn struck oil in 2004 with
its Mangala discovery in remote Barmer district. The announcement
came as Cairn also said it had swung into a loss during the first
half of 2009. Cairn has exploration operations in North Africa
and Greenland, whose icy waters it describes as its next 'huge
opportunity,' but most of its existing value is tied up with India.
Trade deficit falls
Bangladesh's trade deficit fell for the first time last year by more
than half a billion dollars. Economists said import costs remained low
over the last fiscal due to the depressed prices of oil, food and
fertiliser in the global market amid the economic downturn. The
low import costs led to a reduced gap, despite a fall in exports,
counter to the country' s previous history of widening trade deficits
year-on-year. Bangladesh Bank governor Atiur Rahman told
bdnews24.com on Monday the reduced trade deficit has been good for
the country's balance of payments. He also praised farmers, for
bumper crops last year, and 'farmers' sons, the remitters', for their
contributions to the economy. The trade deficit stood at $6.94
billion for FY 2008-09, down by $576.39 million from the previous
year. The $7.52 billion trade deficit in FY 2007-08— a year of
natural disasters for Bangladesh coupled with food and oil price
hikes in the global market—was nearly double the $3.45 billion
deficit of FY 2006-07. Bangladesh Bank data shows imports costs
rose by just 4.06 per cent last fiscal, compared to a 26.07 per cent
increase in FY 2007-08 over FY 2006-07. According to the central
bank, Bangladesh imported goods worth $22.50 billion last fiscal,
and $21.63 billion in FY 2007-08. Low import costs more than offset
accompanying low growth in the export sector. Exports grew by just
10.31 per cent in the last fiscal year, compared to 27.45 per cent in
FY 2007-08. The country's exports totalled $15.56 billion in the
last fiscal, compared to $14.11 billion the previous year.
Bangladesh Bank boss Atiur Rahman said the reduced trade deficit has
positively impacted the country's economy and balance of payments,
despite the slow growth in both imports and exports. 'Reserves
reached a more than satisfactory level and are increasing daily.
Foreign reserves surpassed $7 billion just one-and-a-half months ago
and now stands at $8.3 billion,' said Rahman. He said remittances
from overseas workers have contributed to the country's reserves: 'We
can say farmers and their sons are contributing the most overall to
our economy.' 'On one hand, farmers are saving our foreign
currency from being used to import food with their bumper crops, and
on the other hand their sons are sending back foreign currency earned
through their backbreaking labour overseas,' said Rahman. Zaid
Bakht, senior research director of Bangladesh Institute of
Development Studies, also said the trade deficit had fallen because
food imports came down almost to zero and the cost of fuel and
fertiliser had reduced in the global market. 'However, imports of
capital machinery also reduced, and this is evidence of one kind of
sluggishness in the economy in terms of investment,' said Bakht.
'Whatever the reserves are, no benefits will come if investments do
not grow in the country,' he said. Imports of rice came down to
almost zero last fiscal as a result of bumper Boro and Aman crops.
This was in contrast FY 2007-08, when the twin disasters of flooding
and Cyclone Sidr caused widespread damage to many crops, and a global
food crunch caused prices to spiral in the international market.
The price of rice reached $1,000 from $400 per tonne that year, which
combined with rapidly increasing prices of fertiliser and oil to
imports more costly compared to any time in the past. Imports of
rice and wheat declined by 38.31 per cent in the last fiscal year in
comparison to the 2007-08 FY. Although it increased by 142.72 per
cent in the 2007-2008 FY compared to the previous one.
than half a billion dollars. Economists said import costs remained low
over the last fiscal due to the depressed prices of oil, food and
fertiliser in the global market amid the economic downturn. The
low import costs led to a reduced gap, despite a fall in exports,
counter to the country' s previous history of widening trade deficits
year-on-year. Bangladesh Bank governor Atiur Rahman told
bdnews24.com on Monday the reduced trade deficit has been good for
the country's balance of payments. He also praised farmers, for
bumper crops last year, and 'farmers' sons, the remitters', for their
contributions to the economy. The trade deficit stood at $6.94
billion for FY 2008-09, down by $576.39 million from the previous
year. The $7.52 billion trade deficit in FY 2007-08— a year of
natural disasters for Bangladesh coupled with food and oil price
hikes in the global market—was nearly double the $3.45 billion
deficit of FY 2006-07. Bangladesh Bank data shows imports costs
rose by just 4.06 per cent last fiscal, compared to a 26.07 per cent
increase in FY 2007-08 over FY 2006-07. According to the central
bank, Bangladesh imported goods worth $22.50 billion last fiscal,
and $21.63 billion in FY 2007-08. Low import costs more than offset
accompanying low growth in the export sector. Exports grew by just
10.31 per cent in the last fiscal year, compared to 27.45 per cent in
FY 2007-08. The country's exports totalled $15.56 billion in the
last fiscal, compared to $14.11 billion the previous year.
Bangladesh Bank boss Atiur Rahman said the reduced trade deficit has
positively impacted the country's economy and balance of payments,
despite the slow growth in both imports and exports. 'Reserves
reached a more than satisfactory level and are increasing daily.
Foreign reserves surpassed $7 billion just one-and-a-half months ago
and now stands at $8.3 billion,' said Rahman. He said remittances
from overseas workers have contributed to the country's reserves: 'We
can say farmers and their sons are contributing the most overall to
our economy.' 'On one hand, farmers are saving our foreign
currency from being used to import food with their bumper crops, and
on the other hand their sons are sending back foreign currency earned
through their backbreaking labour overseas,' said Rahman. Zaid
Bakht, senior research director of Bangladesh Institute of
Development Studies, also said the trade deficit had fallen because
food imports came down almost to zero and the cost of fuel and
fertiliser had reduced in the global market. 'However, imports of
capital machinery also reduced, and this is evidence of one kind of
sluggishness in the economy in terms of investment,' said Bakht.
'Whatever the reserves are, no benefits will come if investments do
not grow in the country,' he said. Imports of rice came down to
almost zero last fiscal as a result of bumper Boro and Aman crops.
This was in contrast FY 2007-08, when the twin disasters of flooding
and Cyclone Sidr caused widespread damage to many crops, and a global
food crunch caused prices to spiral in the international market.
The price of rice reached $1,000 from $400 per tonne that year, which
combined with rapidly increasing prices of fertiliser and oil to
imports more costly compared to any time in the past. Imports of
rice and wheat declined by 38.31 per cent in the last fiscal year in
comparison to the 2007-08 FY. Although it increased by 142.72 per
cent in the 2007-2008 FY compared to the previous one.
JAPAN close to oil deal with IRAQ
Resource-poor Japan is close to signing a deal with Iraq on the right
to develop a huge oil field in the Middle Eastern country, corporate
officials said Tuesday. Talks between Baghdad and three Japanese
oil developers 'are in progress toward an agreement' to develop the
Nasiriyah oil field in southern Iraq, a spokesman for Nippon Oil
Corp, one of the three energy firms, said. If the deal is reached,
the Nasiriyah oil field will be the biggest in production volume that
Japanese companies have developed, he said. Trade Minister
Toshihiro Nikai told a news conference Tuesday: 'We'll tackle the
project as a team of the government and the private sector.' 'I
hope for a good result,' the minister said. Japan, the world's
second-largest economy, has few natural resources and is almost
entirely dependent on the Middle East for its oil. The Nasiriyah
field is expected to produce 600, 000 barrels a day, about 10 per cent
of Japan's whole crude consumption, Jiji Press reported. Japan,
officially pacifist since World War II, late last year ended a mission
flying goods and personnel into Iraq on behalf of the US-led
coalition and the United Nations. Former prime minister Junichiro
Koizumi earlier took the landmark step of sending troops to Iraq on a
reconstruction mission, the first time since 1945 Tokyo has sent
forces to a country where fighting was under way. Koizumi ended
the troop mission, which was unpopular among voters, before leaving
office in 2006.
to develop a huge oil field in the Middle Eastern country, corporate
officials said Tuesday. Talks between Baghdad and three Japanese
oil developers 'are in progress toward an agreement' to develop the
Nasiriyah oil field in southern Iraq, a spokesman for Nippon Oil
Corp, one of the three energy firms, said. If the deal is reached,
the Nasiriyah oil field will be the biggest in production volume that
Japanese companies have developed, he said. Trade Minister
Toshihiro Nikai told a news conference Tuesday: 'We'll tackle the
project as a team of the government and the private sector.' 'I
hope for a good result,' the minister said. Japan, the world's
second-largest economy, has few natural resources and is almost
entirely dependent on the Middle East for its oil. The Nasiriyah
field is expected to produce 600, 000 barrels a day, about 10 per cent
of Japan's whole crude consumption, Jiji Press reported. Japan,
officially pacifist since World War II, late last year ended a mission
flying goods and personnel into Iraq on behalf of the US-led
coalition and the United Nations. Former prime minister Junichiro
Koizumi earlier took the landmark step of sending troops to Iraq on a
reconstruction mission, the first time since 1945 Tokyo has sent
forces to a country where fighting was under way. Koizumi ended
the troop mission, which was unpopular among voters, before leaving
office in 2006.
Hongkong exports fall by 19.9pc in july
Hong Kong exports plunged 19.9 per cent year- on-year in July, as
overseas demand for Chinese goods remained subdued despite talk of a
global economic recovery, the government said Tuesday. The total
value of shipments dropped to 212.3 billion Hong Kong dollars
($27.22b), the Census and Statistics Department said in a statement.
The decline was significantly bigger than the 5.4 per cent
year-on-year drop in June, when the government recorded the first
single-digit fall in seven months. For the first seven months of
the year, the value of total exports fell 17.7 per cent from the
same period in 2008 as the global slump hit southern China's
manufacturing heartland, which ships many of its products through
Hong Kong. The sharpest drop in the month was recorded for
exports to Malaysia, Britain and Germany, which were all down about
30 per cent year-on- year. The value of imports decreased 17.8 per
cent to 233.9 billion dollars in July. A government spokesman said
the widened decline in July was a regional phenomenon, as the figure
in many other Asian economies continued to be larger than Hong Kong.
The spokesman added the fall suggested that the recovery path would
be 'rather uneven in the period ahead given that demand in overseas
markets has yet to show visible improvement in the near term.'
overseas demand for Chinese goods remained subdued despite talk of a
global economic recovery, the government said Tuesday. The total
value of shipments dropped to 212.3 billion Hong Kong dollars
($27.22b), the Census and Statistics Department said in a statement.
The decline was significantly bigger than the 5.4 per cent
year-on-year drop in June, when the government recorded the first
single-digit fall in seven months. For the first seven months of
the year, the value of total exports fell 17.7 per cent from the
same period in 2008 as the global slump hit southern China's
manufacturing heartland, which ships many of its products through
Hong Kong. The sharpest drop in the month was recorded for
exports to Malaysia, Britain and Germany, which were all down about
30 per cent year-on- year. The value of imports decreased 17.8 per
cent to 233.9 billion dollars in July. A government spokesman said
the widened decline in July was a regional phenomenon, as the figure
in many other Asian economies continued to be larger than Hong Kong.
The spokesman added the fall suggested that the recovery path would
be 'rather uneven in the period ahead given that demand in overseas
markets has yet to show visible improvement in the near term.'
DSE introduces OTC market september 6
Dhaka Stock Exchange is going to introduce an over the counter
market, a separate trading floor to be used for companies once
de-listed from the normal trading floor, on September 6, said Saiful
Islam, senior vice-president of the bourse. 'After opening the OTC
market, companies will be listed with the market for trading of their
shares after being de-listed from the normal market,' he told New Age
on Tuesday. He said the bourse would de-list non- performing and
non-operational companies. Which listed companies will face the music
is yet to be decided, he said. 'The OTC market will be introduced
at the DSE in accordance with the SEC rules in this connection,'
Saiful said adding 'We are working to have an effective OTC market.'
The Securities and Exchange Commission, stock market regulatory
body, introduced OTC rules in 2001. In July of 2004 the Chittagong
Stock Exchange introduced the OTC market with which four companies,
de-listed from the CSE, are listed. But no trading was held in the
market since its inception, said CSE sources. On June 1, the SEC
asked the Dhaka and Chittagong stock exchanges to prepare a mode of
operation for an effective OTC market for junk shares' trading.
The SEC's instruction came after the DSE had initiated a move to
segregate junk shares aiming to place them into a separate trading
floor instead of normal market. On July 12, the DSE decided that in a
bid to facilitate junk share trading it would set up an OTC market.
Under the OTC system, a separate trading floor will be opened where
interested buyers and sellers of shares of non-performing and
under-performing companies will announce prices and numbers of shares
to be traded. Transaction will take place on the OTC market if the
announced prices of buyers and sellers match. DSE sources said
trading of such companies would take place on the OTC market, meaning
price movement of those shares would not be seen on the electronic
board. The sources said the bourse had no plan to place all the
'Z' category shares into the OTC market but non-operational and
non-performing ones. Out of more than 90 companies now listed
under the 'Z' category, traces of many are not found, while some have
gone out of operations. But trading of shares of those companies is
taking place nonetheless, as many retail investors are unaware of the
companies' present status, according to SEC and DSE sources. From
early July the SEC kept halted the trading of the shares of more than
30 low profile companies.
market, a separate trading floor to be used for companies once
de-listed from the normal trading floor, on September 6, said Saiful
Islam, senior vice-president of the bourse. 'After opening the OTC
market, companies will be listed with the market for trading of their
shares after being de-listed from the normal market,' he told New Age
on Tuesday. He said the bourse would de-list non- performing and
non-operational companies. Which listed companies will face the music
is yet to be decided, he said. 'The OTC market will be introduced
at the DSE in accordance with the SEC rules in this connection,'
Saiful said adding 'We are working to have an effective OTC market.'
The Securities and Exchange Commission, stock market regulatory
body, introduced OTC rules in 2001. In July of 2004 the Chittagong
Stock Exchange introduced the OTC market with which four companies,
de-listed from the CSE, are listed. But no trading was held in the
market since its inception, said CSE sources. On June 1, the SEC
asked the Dhaka and Chittagong stock exchanges to prepare a mode of
operation for an effective OTC market for junk shares' trading.
The SEC's instruction came after the DSE had initiated a move to
segregate junk shares aiming to place them into a separate trading
floor instead of normal market. On July 12, the DSE decided that in a
bid to facilitate junk share trading it would set up an OTC market.
Under the OTC system, a separate trading floor will be opened where
interested buyers and sellers of shares of non-performing and
under-performing companies will announce prices and numbers of shares
to be traded. Transaction will take place on the OTC market if the
announced prices of buyers and sellers match. DSE sources said
trading of such companies would take place on the OTC market, meaning
price movement of those shares would not be seen on the electronic
board. The sources said the bourse had no plan to place all the
'Z' category shares into the OTC market but non-operational and
non-performing ones. Out of more than 90 companies now listed
under the 'Z' category, traces of many are not found, while some have
gone out of operations. But trading of shares of those companies is
taking place nonetheless, as many retail investors are unaware of the
companies' present status, according to SEC and DSE sources. From
early July the SEC kept halted the trading of the shares of more than
30 low profile companies.
Intersts waiver on default loans BANGLADESH BANK recommends committee to as its companies
Bangladesh Bank has advised the finance ministry to form a committee
to assist the companies, which were financially affected during the
rule of the past BNP-led four party alliance government and the
military-backed caretaker administration, official sources said.
The finance ministry in last month sought the central bank's advice
on an application for waiving all interests on default loans and
moratorium on their down payments by the companies like the Globe
Janakantha Shilpa Paribar. The Janakantha Shilpa Paribar applied
to the finance ministry for waiving all interests on their default
loans and moratorium on the down payments as they had financially
suffered for the policies of the last two successive
administrations, finance ministry sources said. The BB sent a
letter to the finance ministry on Thursday suggesting that the
problem of Janaknantha should not be considered as an isolated case,
it should rather be dealt in a comprehensive manner. The central
bank also suggested the government to form a committee which would
provide recommendations on the matter after proper scrutiny to
resolve the problem of the affected companies. Usually, the
concerned commercial banks take the decision on waiver of interest on
default loans and moratorium on their down payments basing on the
bank-client relationship. The BB cannot give advice or directive to
the banks in this regard. The central bank has already sent to the
concerned commercial banks the applications of the loan defaulters
who were affected during the tenure of the past four-party alliance
government and the caretaker administration. As per the BB report
as of March 30 last, the amount of default loans of the Janakantha
Limited stood at Tk 17.12 crore.
to assist the companies, which were financially affected during the
rule of the past BNP-led four party alliance government and the
military-backed caretaker administration, official sources said.
The finance ministry in last month sought the central bank's advice
on an application for waiving all interests on default loans and
moratorium on their down payments by the companies like the Globe
Janakantha Shilpa Paribar. The Janakantha Shilpa Paribar applied
to the finance ministry for waiving all interests on their default
loans and moratorium on the down payments as they had financially
suffered for the policies of the last two successive
administrations, finance ministry sources said. The BB sent a
letter to the finance ministry on Thursday suggesting that the
problem of Janaknantha should not be considered as an isolated case,
it should rather be dealt in a comprehensive manner. The central
bank also suggested the government to form a committee which would
provide recommendations on the matter after proper scrutiny to
resolve the problem of the affected companies. Usually, the
concerned commercial banks take the decision on waiver of interest on
default loans and moratorium on their down payments basing on the
bank-client relationship. The BB cannot give advice or directive to
the banks in this regard. The central bank has already sent to the
concerned commercial banks the applications of the loan defaulters
who were affected during the tenure of the past four-party alliance
government and the caretaker administration. As per the BB report
as of March 30 last, the amount of default loans of the Janakantha
Limited stood at Tk 17.12 crore.
Lego reports profit rise
Europe's biggest traditional toy maker, Lego, reported a rise in
first half net profits on Monday despite the economic crisis and
fierce competition from electronic games. Net profit at the Danish
manufacturer rose to 684 million kroner ($129m) from 427 million
kroner in the first half of 2008 and sales were up 23 per cent, the
company said in a statement. Lego chief executive Jorgen Vig
Knudstorp said the results were 'very satisfactory' but warned there
was still 'considerable uncertainty' about the full year outcome
since most sales happen around the Christmas season. The company
said sales were particularly high in North America and Central and
Eastern Europe, two areas where the crisis has hit very hard, adding
that its classic product lines using colourful plastic blocks
remained the most popular. The family-owned company has undergone
major restructuring in recent years after reporting huge losses
earlier in the decade due to stiff competition from the skyrocketing
popularity of hi-tech computer games.
first half net profits on Monday despite the economic crisis and
fierce competition from electronic games. Net profit at the Danish
manufacturer rose to 684 million kroner ($129m) from 427 million
kroner in the first half of 2008 and sales were up 23 per cent, the
company said in a statement. Lego chief executive Jorgen Vig
Knudstorp said the results were 'very satisfactory' but warned there
was still 'considerable uncertainty' about the full year outcome
since most sales happen around the Christmas season. The company
said sales were particularly high in North America and Central and
Eastern Europe, two areas where the crisis has hit very hard, adding
that its classic product lines using colourful plastic blocks
remained the most popular. The family-owned company has undergone
major restructuring in recent years after reporting huge losses
earlier in the decade due to stiff competition from the skyrocketing
popularity of hi-tech computer games.
Muhith for people’s well-being over revenue targets
Finance minister AMA Muhith on Tuesday said that his government was
working for the well-being of the country's people rather than
putting the highest priority on increasing revenue collection. 'We
have slashed down import duties on a number of commodities for the
well-being of the country's people despite knowing that it will
reduce our revenue collection,' he said while addressing separate
programmes in Chittagong. The finance minister exchanged views
with the officials of the Chittagong Customs and Chittagong Port
Authorities and the leaders of the Chittagong Chamber of Commerce and
Industries, Bangladesh Garment Manufacturers and Exporters
Association, Clearing and Forwarding Agents Association and
Bangladesh Shipping Agents' Association in two separate meetings at
the Customs House in the morning. Muhith said they would focus on
boosting investment, industrialisation and administrative reforms to
strengthen the economy, adding that the suffering of the people become
intolerable when the government puts the highest priority on revenue
earning. He said that at least 25 per cent of the total revenue
remained unrealized due to the writ petitions filed by the importers
and so formation of a special bench at the High Court for quick
disposal of the petitions was under process. The minister said the
government was taking pragmatic measures to curb extortion and
profiteering, as these were the major reasons behind the price-hike
of essential commodities. He also said they were taking necessary
measures to initiate capital dredging of the river Karnaphuli
immediately for increasing the navigability of the port channel,
adding that other facilities of the Chittagong Port were adequate
for conducting export-import activities smoothly. He said that the
pre-shipment inspection system was introduced 12 years back as an
interim measure, and that they were optimistic of putting an end to
it after developing an alternative system by the end of the current
fiscal year. Nasiruddin Ahmed, chairman of the National Board of
Revenue, Commodore RU Ahmed, chairman of the CPA, Syed Golam Kibria,
customs commissioner (import), Shahabuddin Nagari, customs
commissioner (export), MA Salam, senior vice-president of the CCCI,
Nasiruddin Chowdhury, first vice-president of the BGMEA, Ahsanul
Haque Chowdhury, president of the BSAA, and AKM Akhtar Hossain,
president of the C&F Agent Association, were present at the
views-exchange meetings, along with others.
working for the well-being of the country's people rather than
putting the highest priority on increasing revenue collection. 'We
have slashed down import duties on a number of commodities for the
well-being of the country's people despite knowing that it will
reduce our revenue collection,' he said while addressing separate
programmes in Chittagong. The finance minister exchanged views
with the officials of the Chittagong Customs and Chittagong Port
Authorities and the leaders of the Chittagong Chamber of Commerce and
Industries, Bangladesh Garment Manufacturers and Exporters
Association, Clearing and Forwarding Agents Association and
Bangladesh Shipping Agents' Association in two separate meetings at
the Customs House in the morning. Muhith said they would focus on
boosting investment, industrialisation and administrative reforms to
strengthen the economy, adding that the suffering of the people become
intolerable when the government puts the highest priority on revenue
earning. He said that at least 25 per cent of the total revenue
remained unrealized due to the writ petitions filed by the importers
and so formation of a special bench at the High Court for quick
disposal of the petitions was under process. The minister said the
government was taking pragmatic measures to curb extortion and
profiteering, as these were the major reasons behind the price-hike
of essential commodities. He also said they were taking necessary
measures to initiate capital dredging of the river Karnaphuli
immediately for increasing the navigability of the port channel,
adding that other facilities of the Chittagong Port were adequate
for conducting export-import activities smoothly. He said that the
pre-shipment inspection system was introduced 12 years back as an
interim measure, and that they were optimistic of putting an end to
it after developing an alternative system by the end of the current
fiscal year. Nasiruddin Ahmed, chairman of the National Board of
Revenue, Commodore RU Ahmed, chairman of the CPA, Syed Golam Kibria,
customs commissioner (import), Shahabuddin Nagari, customs
commissioner (export), MA Salam, senior vice-president of the CCCI,
Nasiruddin Chowdhury, first vice-president of the BGMEA, Ahsanul
Haque Chowdhury, president of the BSAA, and AKM Akhtar Hossain,
president of the C&F Agent Association, were present at the
views-exchange meetings, along with others.
Citi cuts India GDP forecast
Citigroup said on Tuesday it was cutting its target for India's
economic growth for the 2009/ 10 fiscal year to 5.8 per cent, from 6.8
per cent earlier, taking into account the effects of a weak monsoon.
'Factoring in negative agri growth but leaving industry and
services unchanged, we cut our FY10 GDP estimates to 5.8 per cent
from 6.8 per cent, but retain FY11 (2010/11) estimate at 7.8 per
cent,' it said in a note. The bank maintained its growth forecasts
for industry at 5.5 per cent and services at 8.6 per cent. The US
bank also said that it now expected policy tightening of 125 basis
points for 2009/ 10, compared with an earlier forecast of 75 basis
points. Citi said the government's relief measures to deal with
the drought in many districts of the country could widen the fiscal
deficit to 7 per cent from 6.8 per cent of the gross domestic
product.
economic growth for the 2009/ 10 fiscal year to 5.8 per cent, from 6.8
per cent earlier, taking into account the effects of a weak monsoon.
'Factoring in negative agri growth but leaving industry and
services unchanged, we cut our FY10 GDP estimates to 5.8 per cent
from 6.8 per cent, but retain FY11 (2010/11) estimate at 7.8 per
cent,' it said in a note. The bank maintained its growth forecasts
for industry at 5.5 per cent and services at 8.6 per cent. The US
bank also said that it now expected policy tightening of 125 basis
points for 2009/ 10, compared with an earlier forecast of 75 basis
points. Citi said the government's relief measures to deal with
the drought in many districts of the country could widen the fiscal
deficit to 7 per cent from 6.8 per cent of the gross domestic
product.
Tax collections increase by 18 per cent
The country achieved about 18 per cent income tax growth to taka 139
billion in the fiscal year to end June 2009 despite the global
financial crisis, a tax senior official said. 'The National Board
of Revenue could even surpass the income tax target for the just
concluded financial year due to a successful campaign,' said Abdus
Salam, a deputy commissioner of taxes of the NBR. The NBR earned
over taka 8 billion more than the target for the fiscal year of
2008/09, he said. Bangladesh's biggest mobile phone operator
Grameenphone, 62 per cent owned by Norway's Telenor, topped the list
of large taxpayers, contributing taka 5.50 billion as tax on its
profit. The Islami Bank Bangladesh Limited, being the second
largest taxpayer, paid taka 3.34 billion in the last fiscal year.
In 2007-08, the NBR has achieved 32.78 per cent growth in income tax
collection compared with the previous year and the finance ministry
had disbursed nearly taka 500 million among the officials as cash
reward for achieving the success. The incidences of corruption in
the tax administration would decline if the government continues the
policy of rewarding, officials said adding that it would also speed
up tax collection efforts. Finance minister Abul Maal Abdul Muhith
in his budget speech said there would be increased focus on income
tax collection.
billion in the fiscal year to end June 2009 despite the global
financial crisis, a tax senior official said. 'The National Board
of Revenue could even surpass the income tax target for the just
concluded financial year due to a successful campaign,' said Abdus
Salam, a deputy commissioner of taxes of the NBR. The NBR earned
over taka 8 billion more than the target for the fiscal year of
2008/09, he said. Bangladesh's biggest mobile phone operator
Grameenphone, 62 per cent owned by Norway's Telenor, topped the list
of large taxpayers, contributing taka 5.50 billion as tax on its
profit. The Islami Bank Bangladesh Limited, being the second
largest taxpayer, paid taka 3.34 billion in the last fiscal year.
In 2007-08, the NBR has achieved 32.78 per cent growth in income tax
collection compared with the previous year and the finance ministry
had disbursed nearly taka 500 million among the officials as cash
reward for achieving the success. The incidences of corruption in
the tax administration would decline if the government continues the
policy of rewarding, officials said adding that it would also speed
up tax collection efforts. Finance minister Abul Maal Abdul Muhith
in his budget speech said there would be increased focus on income
tax collection.
India braces for drought, worries over inflation
Meagre monsoon rains have pushed India to the brink of drought,
putting pressure on food prices and energy supplies and imperilling
economic growth, but bulging stocks of wheat and rice will provide a
buffer, top officials said on Tuesday. 'We are staring at the
prospect of an impending drought,' prime minister Manmohan Singh
told a meeting of environment ministers of states. India's vital
monsoon rains have been 29 per cent below normal since the beginning
of the June-September season, hurting crops such as rice and cane
and triggering a sharp rise in food prices in India and sugar futures
abroad. Monsoon rains revived in the past few days, particularly
in the cane-producing state of Uttar Pradesh, where the state
government has declared a drought in most of the districts, but this
has not eased concerns of government and trade officials. A
central bank deputy governor said erratic monsoon rains may put
pressure on prices, but the deputy chairman of the Planning
Commission said India had enough stocks of food to counter
inflationary pressures. Trade Secretary Rahul Khullar, meanwhile,
said the government was not considering a ban on exports of corn and
soymeal. Finance minister Pranab Mukherjee said on Tuesday he
expects economic growth in 2009/10 to be over 6 per cent, as forecast
earlier and in line with a central bank estimate, despite the
monsoon shortfall. He earlier said that 'the ground reality was
that the drought has set in,' according to a government statement
late on Monday. Some private economists have said poor rains could
trim economic growth by as much as 2 percentage points in the fiscal
year that ends in March. Investors, meanwhile, are growing nervous
that a poor harvest could crimp rural spending and erode profit
growth for sellers of consumer goods. Farming accounts for just 17
per cent of the Indian economy but rural consumption makes up more
than half of domestic demand. India's economic growth slowed to 6.7
per cent in its most recent fiscal year after three straight years of
growth of at least 9 per cent. Low rainfall has slowed the
refilling of India's main water reservoirs, threatening the supply
of hydropower, which accounts for a quarter of India's generation,
and reducing availability of water to irrigate winter-sown crops such
as wheat and rapeseed. Hydropower generation in India had fallen
10 per cent from last year, Central Electricity Authority Chairman
Rakesh Nath told reporters. The weather office has forecast
widespread rains in the key cane-growing areas in north and northwest
India as well as the central Indian state of Madhya Pradesh, the main
soybean- growing region. Farm minister, Sharad Pawar, said on
Monday that the country needed to raise planting of winter-sown
crops and improve irrigation to make up for the damage to farms.
Monsoon rains are vital for India's summer- sown crops such as rice,
sugarcane and soybeans because the majority of the farmers do not
have access to irrigation facilities.
putting pressure on food prices and energy supplies and imperilling
economic growth, but bulging stocks of wheat and rice will provide a
buffer, top officials said on Tuesday. 'We are staring at the
prospect of an impending drought,' prime minister Manmohan Singh
told a meeting of environment ministers of states. India's vital
monsoon rains have been 29 per cent below normal since the beginning
of the June-September season, hurting crops such as rice and cane
and triggering a sharp rise in food prices in India and sugar futures
abroad. Monsoon rains revived in the past few days, particularly
in the cane-producing state of Uttar Pradesh, where the state
government has declared a drought in most of the districts, but this
has not eased concerns of government and trade officials. A
central bank deputy governor said erratic monsoon rains may put
pressure on prices, but the deputy chairman of the Planning
Commission said India had enough stocks of food to counter
inflationary pressures. Trade Secretary Rahul Khullar, meanwhile,
said the government was not considering a ban on exports of corn and
soymeal. Finance minister Pranab Mukherjee said on Tuesday he
expects economic growth in 2009/10 to be over 6 per cent, as forecast
earlier and in line with a central bank estimate, despite the
monsoon shortfall. He earlier said that 'the ground reality was
that the drought has set in,' according to a government statement
late on Monday. Some private economists have said poor rains could
trim economic growth by as much as 2 percentage points in the fiscal
year that ends in March. Investors, meanwhile, are growing nervous
that a poor harvest could crimp rural spending and erode profit
growth for sellers of consumer goods. Farming accounts for just 17
per cent of the Indian economy but rural consumption makes up more
than half of domestic demand. India's economic growth slowed to 6.7
per cent in its most recent fiscal year after three straight years of
growth of at least 9 per cent. Low rainfall has slowed the
refilling of India's main water reservoirs, threatening the supply
of hydropower, which accounts for a quarter of India's generation,
and reducing availability of water to irrigate winter-sown crops such
as wheat and rapeseed. Hydropower generation in India had fallen
10 per cent from last year, Central Electricity Authority Chairman
Rakesh Nath told reporters. The weather office has forecast
widespread rains in the key cane-growing areas in north and northwest
India as well as the central Indian state of Madhya Pradesh, the main
soybean- growing region. Farm minister, Sharad Pawar, said on
Monday that the country needed to raise planting of winter-sown
crops and improve irrigation to make up for the damage to farms.
Monsoon rains are vital for India's summer- sown crops such as rice,
sugarcane and soybeans because the majority of the farmers do not
have access to irrigation facilities.
F-SECURE enter in BANGLADESH
F-Secure Corporation, a leading company in providing cyber security
as a service through mobile operators and Internet Service Providers,
signed an agreement with AKCEYCOM Limited to expand its business in
Bangladesh. AKCEYCOM Limited is a joint venture company between
local AK Khan & Company and Ceylinco consolidated of Sri Lanka,
F-Secure on Sunday announced that AKCEYCOM Limited would be the
authorised security service partner to introduce F-Secure service
platform for Bangladesh market targeting the small businesses and
consumers, says a news release. 'Brand building today is different
from what it used to be. We believe partnering with a strong
innovative market leader such as AKCEYCOM Limited will be a vital key
for our success to significantly expand our business here in this
region,' says Venu Palakirti, F-Secure's sales director for India and
SAARC region.
as a service through mobile operators and Internet Service Providers,
signed an agreement with AKCEYCOM Limited to expand its business in
Bangladesh. AKCEYCOM Limited is a joint venture company between
local AK Khan & Company and Ceylinco consolidated of Sri Lanka,
F-Secure on Sunday announced that AKCEYCOM Limited would be the
authorised security service partner to introduce F-Secure service
platform for Bangladesh market targeting the small businesses and
consumers, says a news release. 'Brand building today is different
from what it used to be. We believe partnering with a strong
innovative market leader such as AKCEYCOM Limited will be a vital key
for our success to significantly expand our business here in this
region,' says Venu Palakirti, F-Secure's sales director for India and
SAARC region.
BANGLADESHI interior decors shoring up foothold
Bangladeshi products meant for interior decoration are gradually
getting a strong foothold in domestic market, as many local
companies have sprung up over the past few years on increased demand
for less expensive but quality items. The items like sanitary ware,
tile, aluminium products including doors and windows, bathroom
fitting and cable now drive out foreign products. Sector people
attribute the present position to the local realtors' quest for low
cost but quality interior materials to make apartments affordable to
customers. In a span of only eight years, local makers of such
materials have been able to grab a major market share, they said.
Rashed Mowdud Khan, president of Bangladesh Ceramic Ware
Manufacturers Association, said, " You can even buy a square foot of
tile for only Tk 30 now, which was Tk 130-140 seven to eight years
back. It has become possible, as local manufacturers in a bigger way
have come into the scenario. Earlier, a major portion of the local
demand for the item was met through imports." Khan also pointed to the
fact that availability of cost-effective tiles has driven out mosaic
largely from the market. "I guess local manufacturers account for
more than 65 per cent market share of domestic tile consumption,"
he said. Around seven companies now exist in the market, of which
where RAK Ceramics ( Bangladesh) Pvt Ltd and Bangladesh Insulator &
Sanitary Ware Factory Ltd are on the front line. RAK Ceramics is a
joint venture with the United Arab Emirates, while the other is a
state-run enterprise. These two companies also manufacture
sophisticated bathroom fittings and other equipment. "We produce
around 2 ,700 pieces of sanitary ware every month," a sales
executive of RAK Ceramics said. The chief of the trade body for
ceramic ware manufacturing sector is also upbeat on the item' s
exports in a very near future. Meanwhile, demand for local doors, made
of wood, plastic and aluminium, is also on the rise. "Even five-six
years ago, most readymade doors in the local market were foreign, but
things have changed with the entry of different local companies who
make quality wood and plastic doors," said M Shamim Ullah, proprietor
of Shamim and Brothers, a door vendor and manufacturer in the
capital. Around 10 companies are producing doors with reputation,
according to an official of a renowned furniture company. "Now most
buyers are enthusiastic about locally made doors because these are
durable," said Ranjit Roy, an assistant manager (Sales and
Marketing) of Akhtar Furniture Ltd. Besides, local companies are
making aluminium- made doors, windows and stairs as an alternative of
wood products. "Now the demand for aluminium-made interior material
in the construction sector is fully met by local makers. But things
were different just eight years back when the sector was import-
dependent for such item, " said M Moniruzzaman of Ornate Thai
Aluminium. The annual turnover of the aluminium industry is around Tk
1 ,000 crore, according to industry insiders. President of the Real
Estate and Housing Association of Bangladesh (REHAB) Tanveerul Haq
Probal said realtors prefer to use local products as manufacturers
offer warranty and also provide after-sales-services. "People in the
downtown prefer locally made interior materials as those are
cheaper," he added.
getting a strong foothold in domestic market, as many local
companies have sprung up over the past few years on increased demand
for less expensive but quality items. The items like sanitary ware,
tile, aluminium products including doors and windows, bathroom
fitting and cable now drive out foreign products. Sector people
attribute the present position to the local realtors' quest for low
cost but quality interior materials to make apartments affordable to
customers. In a span of only eight years, local makers of such
materials have been able to grab a major market share, they said.
Rashed Mowdud Khan, president of Bangladesh Ceramic Ware
Manufacturers Association, said, " You can even buy a square foot of
tile for only Tk 30 now, which was Tk 130-140 seven to eight years
back. It has become possible, as local manufacturers in a bigger way
have come into the scenario. Earlier, a major portion of the local
demand for the item was met through imports." Khan also pointed to the
fact that availability of cost-effective tiles has driven out mosaic
largely from the market. "I guess local manufacturers account for
more than 65 per cent market share of domestic tile consumption,"
he said. Around seven companies now exist in the market, of which
where RAK Ceramics ( Bangladesh) Pvt Ltd and Bangladesh Insulator &
Sanitary Ware Factory Ltd are on the front line. RAK Ceramics is a
joint venture with the United Arab Emirates, while the other is a
state-run enterprise. These two companies also manufacture
sophisticated bathroom fittings and other equipment. "We produce
around 2 ,700 pieces of sanitary ware every month," a sales
executive of RAK Ceramics said. The chief of the trade body for
ceramic ware manufacturing sector is also upbeat on the item' s
exports in a very near future. Meanwhile, demand for local doors, made
of wood, plastic and aluminium, is also on the rise. "Even five-six
years ago, most readymade doors in the local market were foreign, but
things have changed with the entry of different local companies who
make quality wood and plastic doors," said M Shamim Ullah, proprietor
of Shamim and Brothers, a door vendor and manufacturer in the
capital. Around 10 companies are producing doors with reputation,
according to an official of a renowned furniture company. "Now most
buyers are enthusiastic about locally made doors because these are
durable," said Ranjit Roy, an assistant manager (Sales and
Marketing) of Akhtar Furniture Ltd. Besides, local companies are
making aluminium- made doors, windows and stairs as an alternative of
wood products. "Now the demand for aluminium-made interior material
in the construction sector is fully met by local makers. But things
were different just eight years back when the sector was import-
dependent for such item, " said M Moniruzzaman of Ornate Thai
Aluminium. The annual turnover of the aluminium industry is around Tk
1 ,000 crore, according to industry insiders. President of the Real
Estate and Housing Association of Bangladesh (REHAB) Tanveerul Haq
Probal said realtors prefer to use local products as manufacturers
offer warranty and also provide after-sales-services. "People in the
downtown prefer locally made interior materials as those are
cheaper," he added.
Bangladesh's shoes gaining ground in US
Bangladesh's leather products are gaining foothold in the
multibillion dollar US footwear market as American importers,
hard-pressed by the worse recession, are turning to price-
competitive sources, industry people said. Shoe shipments from
Bangladesh to the USA increased by 112 per cent in January-June this
year, helping local shoemakers offset the slide in their sales in
recession-hit Europe. During the period, Bangladesh shipped 192,509
pairs of leather shoes to US market, up from 90, 991 pairs of a
year-ago period, a Bangladesh Footwear and Leather Goods Exporters
Association official said quoting US commerce department data. The
figures cheered the leather industry up, as exporters in recent months
found US retailers like Macys or Bostonian and giant wholesaler like
Genesco on the list of American buyers. 'Bangladesh might have been
spotted by US importers as rescission made them more price conscious
than ever,' said Syed Nasim Manzur, managing director of Apex Adelchi
Footwear. The joint venture with the leading Italian shoemaker
that entered American market four years back made up $5 million or 12
per cent of its 2008 export turnover from USA and expected 20 per
cent in 2009. 'Relocations of manufacturing facilities in
Bangladesh by some Taiwanese and Chinese shoe manufacturers may also
have inspired US importers to rate Bangladesh high,' said Nasim.
Sikder Mesbahuddin Ahmed, operation director of the South Korea-based
Youngone Corporation's Bangladesh's business, said, ' Number of
queries to his company from US buyers has multiplied in recent months
compared to those a year ago.' A major supplier of outerwear and
sportswear to North Face and Nike, Youngone is the largest foreign
investor in Bangladesh garment export sector and shoe exports share
only one-sixth of its annual export turnover. The company, which
concentrates its production facilities in EPZs, hopes to raise its
shoe sales from $50 million last year to $300 million from 30 million
pairs annually as it plans to inaugurate the first phase of its mega
shoe factory in Chittagong EPZ by the end of this year. The USA
is the world's single largest footwear market with imports in 2008
amounting to $19. 07 billion, including $11.34 billion worth of
leather shoes. China occupied two-thirds of the market, while
other major suppliers include Vietnam, Italy, Indonesia, Thailand,
Brazil and India. US official data showed shoe imports from China,
Italy, Brazil and Thailand were on the decline, while the
Philippines, Bangladesh, and Cambodia were having growths in recent
months. At present US importers are mostly sourcing men's dress
shoes and casual shoes from Bangladesh. Shipments of luggage,
briefcases, travel and sports bags and personal leather goods to USA
also doubled over the year, exporters' association officials said.
In 2008-09 fiscal that ended in June, Bangladesh exported footwear
worth $187 million, up 10 per cent year on year and leather bags and
purses exports amounted to $17 million, up by 65 per cent.
Industry people estimate that less than 10 per cent of Bangladesh
shoe exports earnings came from USA in the last fiscal. Europe and
Japan, however, remained major destinations of Bangladesh's leather
products. The USA is the single largest market for Bangladesh's
garments with exports totaled $3. 5 billion in 2008. Nasim Manzur
said, 'I foresee USA becomes the major destination for Bangladeshi
shoemakers very soon and shoes can book a billion dollar sales
there.' Bangladesh's shoes get duty-free access to Europe, but are
subject to seven per cent duty in US ports. 'If zero duty is
offered, $10 billion sales in dress and shoe to USA are nothing
impossible,' said Anwar Ul Alam Chowdhury Parvez, the immediate past
president of the Bangladesh Garment Manufacturers and Exporters
Association. He stressed that Bangladesh needs to lobby hard for
getting duty-free access to US market for dresses and shoes to create
several million more jobs.
multibillion dollar US footwear market as American importers,
hard-pressed by the worse recession, are turning to price-
competitive sources, industry people said. Shoe shipments from
Bangladesh to the USA increased by 112 per cent in January-June this
year, helping local shoemakers offset the slide in their sales in
recession-hit Europe. During the period, Bangladesh shipped 192,509
pairs of leather shoes to US market, up from 90, 991 pairs of a
year-ago period, a Bangladesh Footwear and Leather Goods Exporters
Association official said quoting US commerce department data. The
figures cheered the leather industry up, as exporters in recent months
found US retailers like Macys or Bostonian and giant wholesaler like
Genesco on the list of American buyers. 'Bangladesh might have been
spotted by US importers as rescission made them more price conscious
than ever,' said Syed Nasim Manzur, managing director of Apex Adelchi
Footwear. The joint venture with the leading Italian shoemaker
that entered American market four years back made up $5 million or 12
per cent of its 2008 export turnover from USA and expected 20 per
cent in 2009. 'Relocations of manufacturing facilities in
Bangladesh by some Taiwanese and Chinese shoe manufacturers may also
have inspired US importers to rate Bangladesh high,' said Nasim.
Sikder Mesbahuddin Ahmed, operation director of the South Korea-based
Youngone Corporation's Bangladesh's business, said, ' Number of
queries to his company from US buyers has multiplied in recent months
compared to those a year ago.' A major supplier of outerwear and
sportswear to North Face and Nike, Youngone is the largest foreign
investor in Bangladesh garment export sector and shoe exports share
only one-sixth of its annual export turnover. The company, which
concentrates its production facilities in EPZs, hopes to raise its
shoe sales from $50 million last year to $300 million from 30 million
pairs annually as it plans to inaugurate the first phase of its mega
shoe factory in Chittagong EPZ by the end of this year. The USA
is the world's single largest footwear market with imports in 2008
amounting to $19. 07 billion, including $11.34 billion worth of
leather shoes. China occupied two-thirds of the market, while
other major suppliers include Vietnam, Italy, Indonesia, Thailand,
Brazil and India. US official data showed shoe imports from China,
Italy, Brazil and Thailand were on the decline, while the
Philippines, Bangladesh, and Cambodia were having growths in recent
months. At present US importers are mostly sourcing men's dress
shoes and casual shoes from Bangladesh. Shipments of luggage,
briefcases, travel and sports bags and personal leather goods to USA
also doubled over the year, exporters' association officials said.
In 2008-09 fiscal that ended in June, Bangladesh exported footwear
worth $187 million, up 10 per cent year on year and leather bags and
purses exports amounted to $17 million, up by 65 per cent.
Industry people estimate that less than 10 per cent of Bangladesh
shoe exports earnings came from USA in the last fiscal. Europe and
Japan, however, remained major destinations of Bangladesh's leather
products. The USA is the single largest market for Bangladesh's
garments with exports totaled $3. 5 billion in 2008. Nasim Manzur
said, 'I foresee USA becomes the major destination for Bangladeshi
shoemakers very soon and shoes can book a billion dollar sales
there.' Bangladesh's shoes get duty-free access to Europe, but are
subject to seven per cent duty in US ports. 'If zero duty is
offered, $10 billion sales in dress and shoe to USA are nothing
impossible,' said Anwar Ul Alam Chowdhury Parvez, the immediate past
president of the Bangladesh Garment Manufacturers and Exporters
Association. He stressed that Bangladesh needs to lobby hard for
getting duty-free access to US market for dresses and shoes to create
several million more jobs.
US firms to see tight bank lending until mid 2010
The Federal Reserve said Monday most banks expect their lending to
remain tight through the second half of next year, with the exception
of mortgage standards, which already are loosening a bit. The
Fed's latest survey of loan officers found that about 20 per cent of
US banks tightened their lending standards on prime home mortgages
in the April-June quarter, down from around 50 per cent in the
previous quarter and a peak of about 75 per cent a year ago.
Meanwhile, 45 per cent of banks say they tightened standards on
non-traditional mortgages, such as adjustable-rate loans with
multiple payment options, down from 65 per cent in the previous
survey. Around 35 per cent of US banks reported tightening their
lending standards for credit cards, down from nearly 60 per cent in
the first quarter. Getting banks hurt by the financial crisis to
boost lending is critical to a sustained economic recovery. Demand
for prime mortgages has begun to revive, posting its first increase
in the January- March quarter since the Fed began to track those
loans separately in April 2007. The uptick in mortgage demand comes
as rates rose last week. Rates on 30-year home loans remained above 5
per cent, at 5.29 per cent, after reaching a record low earlier this
year. The Fed survey was based on the responses of 55 domestic
banks and 23 US offices of foreign banks. Most of the banks polled
expect their standards for all types of loans to remain tighter than
average levels over the past decade through at least the second half
of 2010. For businesses and families with tarnished credit, that is
expected to continue into 'the foreseeable future' for many banks,
the Fed reported. In other lending, around 45 per cent of banks
surveyed said they tightened standards on commercial real estate
loans over the last three months, down from 65 per cent in the
previous quarter. While banks' losses on home mortgages appear to
be levelling off, delinquencies on commercial real estate loans
remain a hot spot of potential trouble, experts say. Many regional
banks hold large numbers of them. A dramatic example was Colonial
BancGroup Inc, a big lender in real estate development that failed
and was shut down by regulators on Friday — the biggest US bank to
collapse this year with about $25 billion in assets. Montgomery,
Ala.-based Colonial was a major lender to developers in Florida and
Nevada and was hit hard by the collapse of the real estate market in
those states. Its failure is expected to cost the federal insurance
fund around $2.8 billion. The Fed on Monday extended through March
31 the duration of a program intended to spur lending to consumers
and small businesses at lower rates, though it said it had no plans
to expand the types of loans being made. The Term Asset-Backed
Securities Loan Facility figures prominently in the government's
efforts to ease credit, stabilise the financial system and help end
the recession. Under the TALF, investors use the funds to buy
securities backed by auto and student loans, credit cards, business
equipment and loans guaranteed by the Small Business Administration.
Commercial mortgage-backed securities, which were added to TALF in
mid-June, were extended through June 30 because issuing new
securities in that area 'can take a significant amount of time to
arrange,' according to a joint news release from the Fed and the
Treasury Department. Last week, the Fed held interest rates steady
at record lows and again pledged to keep them there for 'an extended
period' to entice businesses and consumers to spend more and nurture
an anticipated recovery.
remain tight through the second half of next year, with the exception
of mortgage standards, which already are loosening a bit. The
Fed's latest survey of loan officers found that about 20 per cent of
US banks tightened their lending standards on prime home mortgages
in the April-June quarter, down from around 50 per cent in the
previous quarter and a peak of about 75 per cent a year ago.
Meanwhile, 45 per cent of banks say they tightened standards on
non-traditional mortgages, such as adjustable-rate loans with
multiple payment options, down from 65 per cent in the previous
survey. Around 35 per cent of US banks reported tightening their
lending standards for credit cards, down from nearly 60 per cent in
the first quarter. Getting banks hurt by the financial crisis to
boost lending is critical to a sustained economic recovery. Demand
for prime mortgages has begun to revive, posting its first increase
in the January- March quarter since the Fed began to track those
loans separately in April 2007. The uptick in mortgage demand comes
as rates rose last week. Rates on 30-year home loans remained above 5
per cent, at 5.29 per cent, after reaching a record low earlier this
year. The Fed survey was based on the responses of 55 domestic
banks and 23 US offices of foreign banks. Most of the banks polled
expect their standards for all types of loans to remain tighter than
average levels over the past decade through at least the second half
of 2010. For businesses and families with tarnished credit, that is
expected to continue into 'the foreseeable future' for many banks,
the Fed reported. In other lending, around 45 per cent of banks
surveyed said they tightened standards on commercial real estate
loans over the last three months, down from 65 per cent in the
previous quarter. While banks' losses on home mortgages appear to
be levelling off, delinquencies on commercial real estate loans
remain a hot spot of potential trouble, experts say. Many regional
banks hold large numbers of them. A dramatic example was Colonial
BancGroup Inc, a big lender in real estate development that failed
and was shut down by regulators on Friday — the biggest US bank to
collapse this year with about $25 billion in assets. Montgomery,
Ala.-based Colonial was a major lender to developers in Florida and
Nevada and was hit hard by the collapse of the real estate market in
those states. Its failure is expected to cost the federal insurance
fund around $2.8 billion. The Fed on Monday extended through March
31 the duration of a program intended to spur lending to consumers
and small businesses at lower rates, though it said it had no plans
to expand the types of loans being made. The Term Asset-Backed
Securities Loan Facility figures prominently in the government's
efforts to ease credit, stabilise the financial system and help end
the recession. Under the TALF, investors use the funds to buy
securities backed by auto and student loans, credit cards, business
equipment and loans guaranteed by the Small Business Administration.
Commercial mortgage-backed securities, which were added to TALF in
mid-June, were extended through June 30 because issuing new
securities in that area 'can take a significant amount of time to
arrange,' according to a joint news release from the Fed and the
Treasury Department. Last week, the Fed held interest rates steady
at record lows and again pledged to keep them there for 'an extended
period' to entice businesses and consumers to spend more and nurture
an anticipated recovery.
DGEN hits second highest this year
The general index of Dhaka Stock Exchange on Tuesday rose to 3,039.
64 points, its second highest this year. The key index gained
32.21 points, or 1.07 per cent, on the day. Its highest in this year
was 3,069.71 points reached on July 2. DSE20 index of blue chips
also gained 23.91 points, or 1.11 per cent, to finish at 2,183.20.
Of the total 240 issues traded, 158 advanced, 74 declined, and eight
remained unchanged. Turnover at the DSE also increased to Tk 710.
78 crore from the Monday's Tk 668.03 crore. Dhaka Stock Exchange on
Tuesday halted temporarily trading of the shares of Chittagong
Vegetables, Dandy Dyeing, and Tallu Spinning, three 'Z' category
stocks. A DSE official said share trading of the companies was
suspended as the bourse's management was conducting enquires into
recent price hike of the low-profile securities. On Tuesday, share
prices of Chittagong Vegetables, Dandy Dyeing, and Tallu Spinning
gained 18.76 per cent, 17.23 per cent, and 11.87 per cent
respectively.
64 points, its second highest this year. The key index gained
32.21 points, or 1.07 per cent, on the day. Its highest in this year
was 3,069.71 points reached on July 2. DSE20 index of blue chips
also gained 23.91 points, or 1.11 per cent, to finish at 2,183.20.
Of the total 240 issues traded, 158 advanced, 74 declined, and eight
remained unchanged. Turnover at the DSE also increased to Tk 710.
78 crore from the Monday's Tk 668.03 crore. Dhaka Stock Exchange on
Tuesday halted temporarily trading of the shares of Chittagong
Vegetables, Dandy Dyeing, and Tallu Spinning, three 'Z' category
stocks. A DSE official said share trading of the companies was
suspended as the bourse's management was conducting enquires into
recent price hike of the low-profile securities. On Tuesday, share
prices of Chittagong Vegetables, Dandy Dyeing, and Tallu Spinning
gained 18.76 per cent, 17.23 per cent, and 11.87 per cent
respectively.
EXXON, China ink $41b Australian gas deal
Australia and China struck their biggest trade deal ever on Tuesday
as the world's two most valuable listed oil companies, Exxon Mobil
and PetroChina, agreed a $41 billion liquefied natural gas deal.
'It's a statement about the nature of our two economies and the fact
that Australia is important to China, just like China is important
to Australia,' Australian Resources minister Martin Ferguson told
Reuters in Beijing. The gas sale agreement between Exxon and
PetroChina comes just weeks after Exxon inked a A$10 billion Gorgon
LNG sales deal with India's Petronet, which marked Australia's first
ever LNG contract with India. The deals, along with regulatory
approvals process from the federal government now nearing
completion, means that the Gorgon project partners could approve the
massive LNG project, located off Western Australia, by early as next
month. The latest Gorgon gas sale would bring PetroChina's total
LNG purchase from the project to a total of 3.25 million tonnes per
annum (mtpa) for 20 years — making it the largest buyer of gas from
the project. Despite the volumes it is buying, the fact that
PetroChina has not secured a minority stake in the project is an
indication that demand for long-term LNG supplies is still buoyant
despite the current economic downturn. With a long list of around
a dozen proposed LNG projects in the Asia-Pacific region, buyers are
also eager to lock in supplies as quickly as possible from projects
that are most likely to be developed. In the deal signed on
Tuesday, PetroChina will buy 2.25 million tonnes per annum (mtpa) of
gas from the Gorgon LNG project for a period of 20 years, Ferguson
said in a statement. The sale is Australia's most valuable trade
deal ever with China, Australia said, adding that the agreement was a
reflection of the strength of Australia's continuing trade and
investment relationship with China. The massive Gorgon LNG
project, operated by Chevron Corp which owns a 50 per cent stake, is
located off western Australia and has a proposed annual output of 15
mtpa. Exxon and Royal Dutch Shell each own a 25 per cent stake in
the project.
as the world's two most valuable listed oil companies, Exxon Mobil
and PetroChina, agreed a $41 billion liquefied natural gas deal.
'It's a statement about the nature of our two economies and the fact
that Australia is important to China, just like China is important
to Australia,' Australian Resources minister Martin Ferguson told
Reuters in Beijing. The gas sale agreement between Exxon and
PetroChina comes just weeks after Exxon inked a A$10 billion Gorgon
LNG sales deal with India's Petronet, which marked Australia's first
ever LNG contract with India. The deals, along with regulatory
approvals process from the federal government now nearing
completion, means that the Gorgon project partners could approve the
massive LNG project, located off Western Australia, by early as next
month. The latest Gorgon gas sale would bring PetroChina's total
LNG purchase from the project to a total of 3.25 million tonnes per
annum (mtpa) for 20 years — making it the largest buyer of gas from
the project. Despite the volumes it is buying, the fact that
PetroChina has not secured a minority stake in the project is an
indication that demand for long-term LNG supplies is still buoyant
despite the current economic downturn. With a long list of around
a dozen proposed LNG projects in the Asia-Pacific region, buyers are
also eager to lock in supplies as quickly as possible from projects
that are most likely to be developed. In the deal signed on
Tuesday, PetroChina will buy 2.25 million tonnes per annum (mtpa) of
gas from the Gorgon LNG project for a period of 20 years, Ferguson
said in a statement. The sale is Australia's most valuable trade
deal ever with China, Australia said, adding that the agreement was a
reflection of the strength of Australia's continuing trade and
investment relationship with China. The massive Gorgon LNG
project, operated by Chevron Corp which owns a 50 per cent stake, is
located off western Australia and has a proposed annual output of 15
mtpa. Exxon and Royal Dutch Shell each own a 25 per cent stake in
the project.
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