Gyp 111
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Financial Express :: Financial Newspaper of Bangladesh
An Italian financial institution--International World Investment Loans (IIWL) is eager to extend long- term credit to the private entrepreneurs in Bangladesh.
In a recent meeting held in Dhaka with the senior officials of the Board of Investment (BoI) a business delegate of the IIWL proposed to facilitate long- term credit in Bangladesh, BoI sources said.
"Some reputed foreign financial institutions, including the IIWL, have shown keen interest to extend private sector credit as our local businesses have emerged in recent years," a senior official of the BoI told the FE Wednesday.
The seven- member delegation of IIWL, based in Parma, Italy, during its visit to Dhaka last week met with the BoI officials about their financing plan in Bangladesh.
The IIWL is operating at world level, to fund, collaborate with state-owned and state-controlled companies, but it also funds private companies and individual entrepreneurs, to invest in employment-generating activities.
It was established in the early '70s from a century-old family business.
Now the company can provide loans to the both private and public sector through various long -term projects like hospitals, waterways, motorways, toll roads, houses for civil use, any kind of building, deforestation and afforestation activities, schools and masonry works for the army.
However, the financing for states or state-owned and state-controlled companies cannot be guaranteed with the CD (Certificate of Deposit), it requires International Promissory Notes of small denomination, signed by the government or by someone on its behalf, and endorsed by the central bank of the same country, according to website of IIWL.
It can finance and build the projects by paying the entire amount of money of the project.
While talking to the FE on Wednesday the Executive Council Member of the BoI Mr. Nabhash Chandra Mandal said, "We have welcomed the Italian financer as we assured them of providing all necessary supports."
It is also a good sign for the country that some reputed foreign banks and financial institutions are coming forward for project financing in Bangladesh. That is why a good number of private companies have received a significant amount of foreign loans in recent months, he added.
During last six months (June, 2012 -- November, 2012), the BoI scrutiny committee for approval of foreign loans and suppliers' credits has approved about $1.09 billion for, at least, 31 private companies in the country.
The highest rate of interest for most foreign loans is set at an average of three months' LIBOR rate (London inter-bank official rate) + 4 per cent, that is within 5.0 per cent.
According to the latest policy of the BoI, private companies can now take recourse to foreign loans or suppliers' credits from the overseas institutions.
Private companies are not required to obtain any prior approval from the BoI for availing such credit if rate of interest is LIBOR +4 per cent.
The down payment, if required, in cases with suppliers' credit, should not exceed 10 per cent of the credit amount and repayment period should not be less than seven years.
An Italian financial institution--International World Investment Loans (IIWL) is eager to extend long- term credit to the private entrepreneurs in Bangladesh.
In a recent meeting held in Dhaka with the senior officials of the Board of Investment (BoI) a business delegate of the IIWL proposed to facilitate long- term credit in Bangladesh, BoI sources said.
"Some reputed foreign financial institutions, including the IIWL, have shown keen interest to extend private sector credit as our local businesses have emerged in recent years," a senior official of the BoI told the FE Wednesday.
The seven- member delegation of IIWL, based in Parma, Italy, during its visit to Dhaka last week met with the BoI officials about their financing plan in Bangladesh.
The IIWL is operating at world level, to fund, collaborate with state-owned and state-controlled companies, but it also funds private companies and individual entrepreneurs, to invest in employment-generating activities.
It was established in the early '70s from a century-old family business.
Now the company can provide loans to the both private and public sector through various long -term projects like hospitals, waterways, motorways, toll roads, houses for civil use, any kind of building, deforestation and afforestation activities, schools and masonry works for the army.
However, the financing for states or state-owned and state-controlled companies cannot be guaranteed with the CD (Certificate of Deposit), it requires International Promissory Notes of small denomination, signed by the government or by someone on its behalf, and endorsed by the central bank of the same country, according to website of IIWL.
It can finance and build the projects by paying the entire amount of money of the project.
While talking to the FE on Wednesday the Executive Council Member of the BoI Mr. Nabhash Chandra Mandal said, "We have welcomed the Italian financer as we assured them of providing all necessary supports."
It is also a good sign for the country that some reputed foreign banks and financial institutions are coming forward for project financing in Bangladesh. That is why a good number of private companies have received a significant amount of foreign loans in recent months, he added.
During last six months (June, 2012 -- November, 2012), the BoI scrutiny committee for approval of foreign loans and suppliers' credits has approved about $1.09 billion for, at least, 31 private companies in the country.
The highest rate of interest for most foreign loans is set at an average of three months' LIBOR rate (London inter-bank official rate) + 4 per cent, that is within 5.0 per cent.
According to the latest policy of the BoI, private companies can now take recourse to foreign loans or suppliers' credits from the overseas institutions.
Private companies are not required to obtain any prior approval from the BoI for availing such credit if rate of interest is LIBOR +4 per cent.
The down payment, if required, in cases with suppliers' credit, should not exceed 10 per cent of the credit amount and repayment period should not be less than seven years.
