Bangladesh Economy: News & Updates

[Tiki Tam Tam]

Ijadani and iFn-0,

Korea and Japan have no iron ore.

POSCO of Korea is amongst the top 30 steel companies of the world!

They are leaders in shipbuilding.

---------- Post added at 12:10 AM ---------- Previous post was at 12:10 AM ----------

sometimes you just dont make sense, do you know that?

One has to have sense to comprehend sense!

You only require enterprise to be a world leader.

Korea and Posco of Korea should be your light!

Korea and Japan are small nations and hardly have any resources and yet they have made their mark in the world!

So, it is not a question of size of a country or being resource rich. It is merely a question of foresight, application of mind and sheer enterprise to excel!

If Korea can do it, I find no reason why a country like Bangladesh cannot do better.

They can if they can whip up their entrepreneur skills and acumen.

 

[Skies]

Worth Reading

I_was_thinking_if_it_is_right_for_me_to_write_about_share_market:

The authorities should not panic due to the overdue correction observed in Bangladesh market in recent weeks. Their main concern should continue to be ensuring macroeconomic stability and sustaining real economic activity and employment generation. The stock market collapse would not necessarily hurt Bangladesh’s growth and employment prospects if the process is well managed. The recent tumble in the index should be seen as the inevitable outcome of irrational exuberance on the part of market participants. What worries me is not the correction, but the panic created by both in the streets and at the level of policy makers. What the retail investors are doing in the street is certainly not going to change the course of the market. It only shows how illiterate the Bangladeshi retail investors are as a class. Time and again, informed analysts and policy makers have warned against the state of market overvaluation. We can have sympathy for them, but there is very little the government can do to save those investors who are driven by greed and speculation, and ignore professional advice. Certainly the market is not for these types of investors, and the sooner they realize their mistakes and get out of the market, the better it will be for the market itself and for themselves. When we see people in every office have the stock market tickers on, and people leaving their productive jobs and becoming day-traders, we know there is something fundamentally wrong with what was happening. The stock markets should be the domain for long-term investors and market oriented professionals. Retail investors should invest in the market through instruments like mutual funds which are managed by professionals.

As regards policy makers, their objective should be to help ensure a softer landing, and let the market find its fundamental valuation level. It is bothersome to observe the administrative interventions undertaken a few weeks back when the index fell to 7200 level to engineer artificially a massive 16% rebound in the index in one day. As reported in the press, Bangladesh Bank directly intervened through Investment Corporation of Bangladesh (ICB). The Securities and Exchange Commission (SEC) and other authorities might have also pressured state owned commercial banks (Shonali, Rupali, etc.) and other financial institutions to get into the market and provide an artificial support. Such a policy never works when the market is misaligned, as we observed last week. Public money may have only bailed out some smart/lucky investors but weakened the financial institutions further.
To put it into perspective, countries like Saudi Arabia, Kuwait, the UAE, and China, with enormous amounts of financial resources could have bought the entire stock market several times if they wanted to do so. But those authorities did not try it because such interventions create morale hazards, and if continued would tantamount to nationalizing a large segment of the economy. Certainly, Bangladesh, with its meager resources and with the size of its stock market at 45-50% of its GDP, cannot afford to get into such misadventure.

What should the authorities do now? This is not the time to panic and bring about short sighted regulatory changes. The experience of the last few weeks clearly indicates that whatever sensible move the SEC and Bangladesh Bank may consider would act against them and trigger a negative development for which the regulators will be blamed. This is a perfect example where you intend to do good things, you will be blamed, and if you don’t do anything, you will still be blamed (for inaction). The policy makers and regulators would, however, need to prepare themselves for two initiatives: 1) assess the impact of a major stock market correction on the domestic economy and determine what kind of policy response the government may have to undertake to mitigate the dampening effect on the real economy through various transmission channels; and 2) the SEC and other policymakers should prepare a comprehensive set of reform measures which can be initiated once the market settles down at the proper level. Nothing major should be done now, when the market is in a correction mode.

The market will find its floor when stock prices would become attractive for the institutional investors, who are probably waiting in the side lines with lots of cash and other liquid assets for future investment at attractive prices. The critical issue is should we call the prices attractive at the average price/earning (P/E) ratio of 23? This reported P/E ratio of 23 should also be taken with a grain of salt since much of the record profit gains recorded by the financial institutions would certainly disappear in 2011 and the adjusted or prospective P/E ratio will be much higher than the reported level. It is normally believed that an average P/E ratio of 12-15 would be attractive for long-term investors. Thus it would be irrational to expect institutional investors to jump into the market and provide a floor for the index at the current level.

Policymakers should therefore not push or force the financial institutions to buy at these high prices. Commercial banks and their subsidiaries have certainly made hefty profit gains in this episode and these institutions should therefore be expected to provide some floor to the market and also protect valuation of their own shares. It would be much more prudent however if Bangladesh Bank first determines how much adversely these banks and other financial institutions have been impacted through their un-cashed portion of stock holdings, the losses incurred by their borrowers through margin and other form of borrowings, and indirect exposures of their clients to the stock market. In some instances, the capital base of the banks may have been significantly eroded and it would be the first order of priority for the Government and Bangladesh Bank to recapitalize these financial institutions by preventing all financial institutions from distributing their profits. The record profits earned by financial institutions should first be used for loan loss provisions and to boost their capital base. Healthy financial institutions are must for a healthy real economy and only healthy financial institutions will provide the floor for the stock market when the valuations would become attractive.

It would be a serious mistake to force or pressure the financial institutions to enter the stock market prematurely. Bad assets (in terms of valuation) to be accumulated by these institutions in this process would only weaken their balance sheet and may lead to collapse of weak financial institutions, thereby transmitting the impact of the stock market collapse to the real economy on a bigger scale. As a matter of fact, Bangladesh Bank may have to be ready to inject liquidity to the financial system in the event some banks are hit seriously by their direct and indirect exposures to the stock market. The emergence of liquidity crisis in the financial system in recent weeks may be an early manifestation of that problem.

the role of monetary policy:

Should the central bank play some role in bursting asset bubbles? This is a contentious issue that has been discussed for a long time. Some argue in favour of the view that central banks should burst bubbles. But, in their view, monetary policy should respond to asset bubbles in a cautious and moderate manner in order to avoid economic distortions. Some others argue against the role of central bank in bursting bubbles. They say that bubbles generally arise out of some combination of irrational exuberance, jumps forward in technology and financial deregulation, for which the connection between monetary conditions and the rise of bubbles is tenuous.

However, the central bank is at the center point in this debate. The recent crash in the stock market in Bangladesh is also associated with some policies of the central bank. The aim of this write-up is to analyze the following two aspects: whether monetary policy response was appropriate to the rise and the recent collapse of the bubble, and whether the behaviour of financial institutions was optimal to the policy response.

Commercial banks have been involved heavily in the stock market business for the last few years. Allowing merchant banking has exaggerated the situation. Banks became the key player in the stock market in Bangladesh. Therefore, any policies to control banks' exposure to the stock market would have significant impact on the capital market. Monetary easing during last two or more years (money supply was more than 22% during the period) also fuelled to the buoyancy of the stock market. Perhaps, Bangladesh Bank was not very much aware about banks' exposure to the stock market. This can be justified from banks' profit from share business, which seemed to be negligible according to their income statement or balance sheet, although there is a wide perception that banks are making a handsome profit from investing in shares and debentures. Proper data on their exposure to the capital market remained unknown, which I think is a failure on the part of the central bank as a supervisory agency.

Moreover, almost all policies to minimize the exposure of banks in the stock market were taken in 2010, when stock index had reached to an alarming level. The situation had worsened when it was made mandatory for all banks to maintain their investment in the stock market equivalent to 10% of their total deposit and to comply with it by December, 2010, as in reality the ratio was much higher than this level. Along with the measure, increasing the Cash Reserve Ratio (CRR) was doubly debacles for the banks. Naturally, banks, the big player of the stock market, had to sell a huge amount of shares due to liquidity constraints, which had caused share prices to decline.

Some speculators also took the opportunity as they are somehow linked with bank management and ownerships. This phenomenon also casts doubt on the validity of the reported amount of excess liquidity in the banking sector in Bangladesh. Withdrawal of banks' huge investments from the stock market appears to be one of the main reasons behind the recent crash in the capital market in Bangladesh.

Now the question is, whether Bangladesh Bank had any good reason to refrain itself substantially from investing in the share market this time? There might have been few reasons behind the decisions, such as to contain inflation, to channelise more credit to the real sector, and to protect the interest of bank depositors by limiting banks from risky investments. If Bangladesh Bank did so to control money supply due to rising trend of inflation, I would rather say that the issue was not analyzed properly. The money that was running behind stocks has some multiplier effects in accumulating more stocks. Thus it appears not to contribute to inflation to that extent as it is not channeling directly to food prices or other non-food prices that are the main components of inflation.

Whether investing in the capital market crowd out private investments in the real sector is not clear -- perhaps this is also not a very strong reason. Credit given by merchant banks seems to be negligible compared to market capitalization or even to daily transaction. The third one might be reasonable, but this does not require any hard measure like the one that has been undertaken. Soft landing (measures) was expected to reduce banks' investment in the capital market to 10% of total deposits. Commercial banks should have given more time for gradual adjustments. In this context, the timing of increasing CRR was not appropriate.

This reminds us the Bank of Japan's (BoJ) policy in bursting bubble in the early 1990s which has caused a prolonged economic recession and one of the biggest banking crises. Although the action of BoJ was to burst the real-estate asset price bubble, it had caused a crash in the Japanese stock market also. The main efforts to stop bubble included monetary tightening, new regulation on administering real asset prices and the adoption of the Basel Accord of capital adequacy requirements in 1989. After burst of the bubble in early 1990, a decade of the crisis starts with the first failure in 1992 (as many as 180 banks up to 2003 failed according to the statistics of the Deposit Insurance Corporation, Japan). As a result, bank assumed a huge burden of non-performing loan, and deflation, recession etc. prolonged. The then monetary policy of BoJ is still criticized.

If monetary policy (ultra-easing interest policy) was supposed to be contributed to the creation of the bubble, was it appropriate to stop bubble within a short period of time, especially when banks did collateral-based huge investment in the real-estate sector? Some have argued that the asset price bubble and monetary policies at that time in Japan were mainly responsible for the crisis. The lessons that can be learned from the Japanese experience that central bank's role to burst bubbles must depend on the degree of efficiency of the financial sector and the speed to burst the bubble must be based on the overall economic situation.

It is now very important for Bangladesh to investigate, inter alia, the degree of involvement of commercial banks in the stock market before and during the crash as well as synchronization of the central bank's monetary policies. The asset price bubble issue has been discussed in the latest Monetary Policy Statement of Bangladesh Bank. However, what is needed is to analyze their policies and formulate a long-term policy framework for gradual correction of asset prices. It is also important for Bangladesh Bank to understand the degree of banks' involvement in the capital market by taking lessons from other similar cases and analyzing the overall economic situation.

-by googling

 

[Skies]

Bangladesh - Halal meat boom

08 Jul 2011


Bengal Meat Processing Industries, an internationally certified meat producer and exporter, expects to ring up Tk 400 million in overseas sales this year by doubling its halal meat export.


The company was recently awarded halal certification by the Department of Islamic Development, Malaysia (JAKIM), which allows it to export processed meat to any halal market around the world.
“We now export 1000 tonnes meat a year and our target is to make 5000 tonnes by 2012,” Mazharul Islam, managing director of Bengal Meat, told the FE in an interview.

He said they exported processed meat worth Tk 200 million last year.
The export market is confined to a few Middle Eastern countries like Kuwait, UAE and Saudi Arabia for the last seven years, mainly targetting expatriate Bangladeshis and other ethnic Muslims in those countries, only adding Malaysia to the list this year.

Dato Tan Lian Hoe, deputy minister for trade of Malaysia, welcomed the Bangladeshi meat processing company, which has achieved the certification of her country during the opening ceremony of a three-day Malaysian trade fair in the city.

She also visited the Bengal Meat factory at Pabna further facilitating the entry of Bangladeshi halal processed meat to the Malaysian market.

Mr Islam said that his factory, the only ISO certified meat processing company, can be compared with any international standard factory but stressed the government’s effort to ensure certain issues for the development of meat processing industry in Bangladesh.

“The process of entering the Malaysian market began almost two and half years ago. We as a factory had no problem to be approved by any country but the government must ensure animal health management, disease control and disease free zone to promote Bangladesh as a meat exporting country,” he said.

Although Bangladesh has the 7th largest cattle population in the world, it has one of the lowest per capita meat consumption.

“Generally, a person should intake 100 to 110 gm of protein. In Bangladesh, the per capita meat consumption is 12 gm,” Mr. Islam added.

He said about 10,000 cows are producing about 1000 tonnes of meat and 40,000 goats producing about 300 tonnes are slaughtered everyday in the country.

He added the per capita meat consumption is bound to increase as the per capita income increases.
Bangladesh has to ensure the importing countries that the meat exported does not contain any hazardous elements and germs, said Mr Islam, adding “it requires an international testing lab.”

The government earlier had a plan to form a high-profile committee to recommend ways to establish a board for certification for halal foods after repeated appeals from processed food exporters and setting up of a testing lab which is yet to see light.

Mr Islam said the most important thing for the growth of this sector is backward linkage and ensuring quality cattle raising to be an internationally approved meat exporting country.


He said developed countries like Australia and New Zealand have turned around their economy by harvesting the huge potential of their dairy farm sector, which also can be a prospective industry for Bangladesh too by having the right attitude towards the sector.

“The economy of Bangladesh is based on agriculture and cattle raising. People now just to learn the process of raising quality cattle and policy to make the sector commercially viable,” he added.

Bangladesh - Halal meat boom

 

[integra]

Ctg port tops 12 'super efficient' ports in Asia

Despite having shortage of modern equipment, country's key seaport, Chittagong port, secured top position in terms of efficiency among 69 ports of 17 countries in Asia, says a recent study, reports UNB.

The report -- Benchmarking the Efficiency of Asian Container Ports -- says Chittagong port is using existing old and new equipment at its optimum level, and the study found Chittagong port as the most efficient port.

The researchers reached this conclusion after evaluating data of five years and the study carried out in 2010. The study findings were published in African Journal of Business Management (Vol. 5(4), pp. 1397-1407) on February 18 this year.

According to the study findings, 12 ports have been ranked for 'super efficiency' with Chittagong topping the list.

The ports of Zamboanga and General Santos in the Philippines were in the second and third position respectively in the super efficiency category.

Xiamen of China, Sihanoukville of Cambodia, Davao of the Philippines, Yantian of China, Lianyungang of China, PSA Int. of Singapore, Tianjin of China, Mumbai of India, and Guangzhou of China were among the other 12 ports in the category.

The remaining 47 ports are inefficient in terms of both technical efficiency and scale efficiency levels.

Given the current phase of globalisation and competition, port performance is of major importance for port competitiveness, the report said.

The study analysed the technical efficiency and scale efficiency of Asian container ports by means of DEA. The analysis shows that the main source of overall technical inefficiency in Asian container ports is due to pure technical inefficiencies rather than scale inefficiencies.

About 35 per cent of the container ports exhibit decreasing returns to scale. These ports can decrease their scale of operations by giving up some of the terminal assets and operational functions to other specialised private entities via concessions and leaseholds.

This will allow efficient handling and transit of containers as well as help promote intra-port competition between multiple service providers within a port which can lead to higher efficiency gains.

Strategies that impact on the volume and nature of trade are to become a hub, seek World Trade Organisation (WTO) membership, provide dedicated container terminals, seek cooperation strategies between ports and improve on their transport infrastructure to link with the hinterland.

The analysis also revealed that Chinese container ports enjoy a clear lead in the Asian region in terms of containers handled and they are very competitive. Size and ownership structure are not determinants of efficiency level in container ports.

In the last decade, the shipping industry and the global seaborne trade have witnessed a rapid growth due to globalisation of the world economy, boom in international trade and borderless investments.

As competition among international ports has intensified, the evaluation of port operational efficiency has become increasingly important to enable individual ports to reflect on its current status quo and understand their strengths and weaknesses in the competitive environment.

The study was conducted to investigate the technical and scale efficiency of major container ports in the Asian region.

It employed the non-parametric Data Envelopment Analysis (DEA) Technique to benchmark and evaluated the operating performance of 69 major Asian container ports to generate efficiency ranking.

The results indicate that the average technical efficiency of the Asian container ports is 48.4 per cent.

The overall technical inefficiency in Asian container ports is due to pure technical inefficiency rather than scale inefficiency.

The results of the study can indicate possible improvements in port management and operational planning at local and national levels.

 

[integra]

Knitwear makers target Russia

Monira Munni

Garment makers have set their eyes on Russia, aiming to sell apparel worth US$2.0 billion to Europe's most populous nation, as part of their latest efforts to diversify export markets away from the EU and the US.

Manufacturers told the FE Thursday Russian economy has been growing fast, but retailers there buy clothing mainly from Turkey and China as direct sourcing from Bangladesh is still in its infancy.

"Russia is a good market both in terms of price and product demand," Mohammad Hatem vice president Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) told the FE.

"The fast-booming Russian market now accounts for only one per cent of our total garment exports. But a BKMEA study has shown that we can raise apparel export to Russia to at least $2.0 billion within the next three-four years," Mr. Hatem said.

As part of a drive to find new markets for the Bangladeshi apparel, two local trade promotion teams will visit Moscow this year to forge links with the Russian retailers and get them acquainted with Bangladeshi products.

Officials said the first team will be led by knitwear exporters who will attend a fair in Moscow where they will display the entire range of Bangladeshi apparel and hold parleys with the buyers and the Russian trade bureaucrats.

The second team will travel to the world's largest country the next month. Senior officials of the Bangladesh Bank, Ministry of Commerce and Export Promotion Bureau and some members of the BKMEA will make the trip.

"In the first tour our emphasis will be to exclusively promote products and try to kick off direct trade ties between Dhaka and Moscow. In the second we will hold a series of meetings so that we can cement the links and foster direct trade," said Mr. Hatem.

"What we need now is to open a direct channel to enter Russia. Many Russian retailers simply don't know that our apparel is the most cost competitive in the world and quality of our products is as good as China or Turkey," said a knitwear exporter.

Local manufacturers are making shipment through indirect sourcing via Turkey, Finland and Germany through the telegraphic transfer (TT) system due to some custom-related obstacles, he said.

EPB officials said Russian buyers cannot import directly from Bangladesh, as the two nations don't have banking links that can allow shipment of merchandise through letter of credit. They can only ship a negligible amount through the TT process.

"The BB and commerce ministry officials will hold meeting with their Russian counterparts during the September visit. Hopefully, the LC system will be in place immediately after the tour," Mr Hatem said.

The country fetched $19 billion from apparel export in the just concluded 2010-11 fiscal year, posting an impressive 42 per cent growth over the same period of the previous fiscal year.

But about 85 percent of the apparel was shipped to only two markets --- the US and the 27-nation bloc European Union --- leaving the local exporters extremely susceptible to any major economic downturn in the world's two largest economies.

In the 2009-10 fiscal year, Bangladesh apparel export fell down to a meagre two per cent after the global recession dried up consumer spending in the US and the EU.

 

[Skies]

IFC Launches Liquidity Facility in Bangladesh to Meet Critical Funding Needs of Smaller Businesses

The FINANCIAL -- Dhaka, Bangladesh, July 19, 2011—IFC, a member of the World Bank Group, has launched an $80 million short-term liquidity facility to provide banks in Bangladesh with working capital and trade financing solutions following recent market disruptions in foreign exchange availability in the country.

The funds were made available through the newly formed IFC Bangladesh Small and Medium Enterprise Liquidity Facility, a rapid-response initiative to help meet funding needs of local banks and small businesses.


Bangladeshi regulatory authorities have been particularly complimentary of the speed and timeliness of IFC’s intervention and financing support. The facility will enable small and medium enterprises, especially those that are export-oriented, to have continued access to critical funding for timely issuance and discounting of Letters of Credit.

The FINANCIAL -- Dhaka, Bangladesh, July 19, 2011—IFC, a member of the World Bank Group, has launched an $80 million short-term liquidity facility to provide banks in Bangladesh with working capital and trade financing solutions following recent market disruptions in foreign exchange availability in the country.

In the first phase, IFC signed agreements with existing clients Eastern Bank Limited, BRAC Bank, and Southeast Bank Limited. The facility is well received by local bankers and subsequently will reach out to other banks that could potentially receive similar financing.

Appreciating IFC’s swift response, the three banks’ CEOs expressed their endorsement of IFC’s ability to put together “an innovative mechanism to address the liquidity needs of their borrowers.” All three felt IFC filled a critical market need in Bangladesh, where trade finance is either prohibitively costly or not available given the country’s perceived risks.

“The facility aligns with IFC’s financial sector strategy in Bangladesh, by seeking to strengthen local financial institutions with capital, liquidity support, and advisory services. Through the facility, IFC will support the private sector, especially export-oriented companies and small entrepreneurs, who form the backbone of the country’s economy,” said Kyle F. Kelhofer, IFC Country Manager for Bangladesh.

The facility will help increase the number and value of short-term transactions to finance the working capital needs of small enterprises and exporters located in Bangladesh’s Special Economic Zones. IFC’s funding will encourage international banks to follow IFC’s lead and finance the local banking sector and increase their range of funding options. It will also help accelerate export-led economic growth in Bangladesh in addition to supporting job security in the small business sector.

IFC has been working in Bangladesh, with both investment and advisory services, to strengthen underserved economic sectors and ease constraints to access to finance, especially for small businesses.

The FINANCIAL - IFC Launches Liquidity Facility in Bangladesh to Meet Critical Funding Needs of Smaller Businesses

 

[Skies]

Mitsubishi Motors starts production of Pajero Sport SUV in Bangladesh

Business Aug. 10, 2011 - 06:10AM JST
japantoday.com


TOKYO —

Mitsubishi Motors Corp (MMC) said Tuesday that it has started local production and sales in Bangladesh of its new-model Pajero Sport SUV. The Pajero Sport is being produced at the Chittagong plant of Pragoti Industries Limited (PIL), MMC’s business partner in Bangladesh, and will be sold through PIL’s domestic sales network.

PIL is a state-owned automobile assembler operated by the Bangladesh Ministry of Industries and has had operational ties with MMC, assembling and selling MMC models in Bangladesh since 1977. PIL has produced and sold MMC’s previous-generation Pajero since 1995 and with the addition of the new-model Pajero Sport SUV is seeking to strengthen its lineup and expand sales further. Initially the company expects to produce and sell some 500 Pajero Sport models annually.

MMC first entered the Bangladesh market in the 1970s. In addition to its production and sales operations with PIL, the company also sells imported built-up Mitsubishi-brand models and has captured a large share of the country’s market for new passenger cars and SUV models. MMC intends to continue extending its presence in Bangladesh in various ways including the timely introduction of new models.

 

[Skies]

JPMORGAN CHASE : J.P. Morgan and Biman in USD 277 Million Financing Deal for Purchase of Two Aircraft

HONG KONG, August 8, 2011 - J.P. Morgan announced today that it has provided a USD 277 million financing facility to Biman Bangladesh Airlines Limited ("Biman") to support the airline's long-term, strategic expansion plan.

Through the facility, Biman, which is 100% owned by the Government of Bangladesh, will purchase two new Boeing aircraft to service an expanding domestic and international network of routes. This is the first aircraft delivery arising from Biman's 2008 order placed with Boeing for 10 aircraft over the next decade. Guaranteed by the Export-Import Bank of the United States ("U.S. Ex-Im Bank"), the 12-year loan facility will be repaid quarterly. J.P. Morgan has almost 50 years' experience in handling U.S. Ex-Im Bank guaranteed transactions, and is one of the world's largest providers of aircraft financing through U.S. Ex-Im Bank.

Muhammad Zakiul Islam, Managing Director and CEO of Biman, said: "J.P. Morgan's proven track record in providing aircraft financing and their comprehensive end-to-end financing solution were key factors in our decision to partner with them. Throughout this process, their trade finance team consistently provided advice when we needed it and backed this up with an efficient and effective execution."

Sazzad Anam, Head of Financial Institutions, Bangladesh, J.P. Morgan Treasury Services, said: "Following the launch of our representative office in October last year, we have focused on providing our Bangladesh clients with even greater access to J.P. Morgan's comprehensive suite of global solutions. We look forward to strengthening our partnership with Biman as they continue to ramp up their expansion."

Adeline Kow, Head of Export Finance Advisory, Asia Pacific, J.P. Morgan Treasury Services, said: "As this dynamic region continues to grow and develop, we are seeing a surge in interest from clients across all sectors seeking structured trade finance solutions. Many companies, particularly those based in emerging and frontier markets, are aggressively expanding their business and seeking cost effective, large scale funding to facilitate their strategic growth plans."

J.P. Morgan Treasury & Securities Services ("TSS"), which comprises the Worldwide Securities Services and Treasury Services businesses, provides solutions to institutional and corporate clients across the region. In line with the firm's aggressive regional growth plans, J.P. Morgan last year hired an additional 600 financial professionals across the Asia Pacific region, expanding its local on-ground presence, enhancing its range of market leading products and elevating its client servicing capabilities.

About Biman Bangladesh Airlines Ltd.

Founded in 1972, Biman Bangladesh Airlines Ltd. ("Biman") is 100% owned by the Government of Bangladesh. A member of the International Air Transport Association ("IATA"), Biman operates an international network spanning 19 destinations in Asia and Europe through its fleet of 11 aircraft. In 2010-11, the airline carried a total of 1.62 million passengers and 32,838 tons of cargo. Having placed the single largest order in its history of 10 new Boeing Aircraft, substantial growth in fleet size, passenger and cargo uplift and destinations is expected. The airline is IOSA registered.

About J.P. Morgan Treasury Services

J.P. Morgan's Treasury Services business is a full-service provider of innovative cash management, trade, liquidity, commercial card and escrow services -- specifically developed to meet the challenges treasury professionals face today. More than 135,000 corporations, financial institutions, governments and municipalities in over 180 countries and territories entrust their business to J.P. Morgan. J.P. Morgan Treasury Services is one of the world's largest providers of treasury management services and a division of JPMorgan Chase Bank, N.A., member FDIC. More information can be found at J.P. Morgan Treasury Services.

About JPMorgan Chase & Co.

JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.2 trillion and operations in more than 60 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co.JPMorgan Chase & Co..

 

[F-16_Falcon]

Bangladesh drew worth $913 million as foreign direct investment in 2010

Investors, traders fear slowed-down economy this fiscal

Lowest in the region!

 

[chisty_chowdhury]

Govt inks deal with ADB

Dhaka, August 10 (bdnews24.com) – With the rapid urbanisation generating formidable challenges for city dwellers, the Bangladesh government has inked a US$ 120 million 'soft' loan agreement with the Asian Development Bank (ADB) to kick off its 'City Region Development Project'.

The five-year project (2011-2016) for US$ 184.70 million will focus on improving the urban environment, infrastructure and services.

Economic Relations Division (ERD)'s secretary M Musharraf Hossain Bhuiyan and ADB's Bangladesh Resident Mission's country director Thevakumar Kandiah signed the pact on behalf of their respective sides in the capital on Wednesday.

The loan that has to be repaid by 32 years – an eight year grace period at an annual interest rate of 1 percent and 1.5 percent for the balance of the term – will be used to overhaul Dhaka and Khulna city corporations.

The Local Government Engineering Division is the leading executing agency.

The loan will be used to improve urban environment and infrastructure services based on effective regional urban planning, the secretary said.

He said German government owned banking group KfW would give US$ 14.7 million as grant while the Bangladesh government would inject another US$ 50 million in the project.

"The project aims to increase the growth potential and environmental sustainability of these two city regions," the ADB country director said.

He said the project implementation would proceed 'quickly and rapidly'.

Along with the physical improvements to water, drainage, waste management, and urban transport, the project will incorporate a pilot programme that will install energy-efficient water pumps and solar-powered street lights.

The project will also review and update the existing Dhaka Metropolitan Development Plan, and draw up a framework for integrated, coordinated regional development.

Feasibility studies of the future projects, including one for a proposed satellite city in Savar, will also be carried out.

Support will be given to help municipal agencies improve their capabilities for urban planning, tax assessment, tax collection, human resource management and public participation.

With the fresh loan agreement, ADB's total loan to Bangladesh stands at over US$ 11 billion, according to the Economic Relations Division.

ADB is one of the biggest multilateral developmental partners for Bangladesh since 1973, when the country became its member.

 

[chisty_chowdhury]

Every Mhz of spectrum of mobile communication to cost Tk 1.5bn

Dhaka, Aug 9 (bdnews24.com) – The mobile operators will have to pay Tk 1.5 billion for every megahertz of GSM 1800 and 900 bands as spectrum allocation fee.

The decision came, following repeated protests from the four operators, on Tuesday at a meeting with the prime minister, said telecommunications minister Rajiuddin Ahmed Raju.

At a press conference at the Secretariat he expressed hope that the operators should be happy with the new decision.

The operators — Grameenphone, Banglalink, Robi and Citycell — will have to pay the spectrum fee for the first time.

The draft guideline of Bangladesh Telecommunication Regulatory Commission (BTRC), published on Jan 20, proposed Tk 3 billion for GSM 900 band and Tk 1.5 billion for GSM 1800 band.

Raju said the guideline would be finalised by Sept 15.

All fees for licence renewal and spectrum allocation would be payable in four instalments, with 49 percent mandatory payment to be made by November this year.

Secretary Sunil Kanti Bose said the operators will have to pay the government five percent of their income. "Social obligation fee has also been cut down to 1 percent of profits from 1.5 as proposed initially."

He said the decisions came following discussions with the mobile operators. "Hope, they won't have any objection now."

BTRC chairman Zia Ahmed on Apr 24 said the fees were logical as the companies did not pay any fees in the past 15 years. "They got spectrum for free. If they had paid the fees, Tk 52 billion would have been collected."

Zia also said, "They will earn Tk 2 trillion in the next 15 years. So, they should have no problem in paying the fees."

There are five GSM and one CDMA service providers who have some 75 million subscribers. Over 10 million people in the country are enjoying internet service, 94 percent of whom access through mobile.

 

[chisty_chowdhury]

New currency notes to hit market Thursday

Dhaka, Aug 9 (bdnews24.com) – Currency notes of five different denominations with picture of the Father of the Nation Sheikh Mujibur Rahman will be released on Thursday.

Bangladesh Bank has published the photographs of these notes of Tk 2, Tk 5, Tk 100, Tk 500 and Tk 1000 denominations.

A press statement from the central bank said on Tuesday that initially, these new-design notes will be issued only from the Motijheel office. However, later these notes will be available at all offices of the bank and also at commercial banks.

Right now, only notes of Tk 5 and Tk 500 have the photograph of Bangabandhu embossed on them.

A central bank official said on March 4 of 1972, as first currency notes of Bangladesh, only Tk 1, Tk 5, Tk 10 and Tk 100 were issued, and they all carried the picture of Bangabandhu. But later, successive governments withdrew those notes to replace with new ones.

In 1996, the Awami League government again issued currency notes of Tk 10 and Tk 500 denominations, bearing Bangabandhu's image. Later in 2009, the government also issued Tk 1, Tk 2 and Tk 5 coins with Sheikh Mujib's image.

Tk 2 denomination notes will have the signature of finance secretary Mohammad Tareq while notes of Tk 5, 100, 500 and Tk 1000 denominations will bear the signature of Bangladesh Bank governor Atiur Rahman.

Bangabandhu's picture and those of National Monument will be displayed on the left side of each of these notes made with synthetic-mixed paper.

On the opposite of Tk 2 notes will be photo of Central Shaheed Minar, Tk 5 notes will have the picture of Naogaon Kusumba Mosque, Tk 100 notes Tara Mosque photo, Tk 500 notes will display farming and Tk 1000 notes will have the photo of Jatiya Sangsad Bhaban (national assembly building).

Each note will contain watermark of Bangabandhu's picture, replacing the photos of the Royal Bengal Tiger and the national flower 'Shapla' (water lily).

However, apart from the new notes, all the existing notes and coins will also be exchangeable in the market, said the statement.

 

[Skies]

India's Emmsons offers $329.11/T wheat to Bangladesh

Wednesday, 17 August 2011 19:00

DHAKA: India's Emmsons International Limited made the lowest offer at $329.11 a tonne, including CIF liner out, in a Bangladesh tender that opened on Wednesday to buy 50,000 tonnes of wheat, a food official said.

Seven bidders took part in the tender, issued by the state grains buyer early this month as part of efforts to replenish government inventories.

The offer is $24.11 a tonne higher than in a previous tender that opened on Aug. 1, in which a domestic firm submitted the lowest offer of $305 a tonne.

Emmsons also secured another Bangladesh tender to supply a similar quantity of wheat at $309.11 a tonne.

Traders said the source for the wheat could be Black Sea region although Emmsons supplied more than 400,000 tonnes of wheat, mostly Australian, to Bangladesh in the year to June.

The government has turned to the wheat market after bulk buying of rice in the last fiscal year that ended in June, as prices slid after Russia and Ukraine resumed normal export flows.

On Tuesday, the government signed a memorandum to buy wheat from Ukraine but failed to reach any conclusion on an earlier Kiev offer to supply 100,000 tonnes to the South Asian country at $365 a tonne, which Bangladeshi officials said was high.

An official team from Ukraine is now visiting Bangladesh.

"The signing has created an opportunity to buy from them in a state-to-state deal," Ahmed Hossain Khan, director general of the state grains buyer, said.

"Their earlier offer has also been discussed, including price and other terms and conditions. But it will take time to strike the deal," he told Reuters on Wednesday.

Bangladesh, which buys around 3 million to 4 million tonnes of wheat a year, is likely to lead the way in Asia in switching to Black Sea supplies.

Bangladesh's imports of wheat and rice surged to 5.3 million tonnes in the last fiscal year, from 3 million the year before, putting additional pressure on its balance of payments.

Rice and wheat imports are likely to drop in the current fiscal year, but food officials and analysts said Bangladesh could emerge as a major buyer again if prices of the staples remain high in the domestic market or if any natural disasters cut output.

 

[Skies]

Energy-hungry Bangladesh strikes new gas reserve
Wed Aug 17, 2011 2:12pm GMT


DHAKA Aug 17 (Reuters) - Bangladesh has struck a gas reserve at a newly discovered field at a time when the country is facing acute gas shortages, a senior energy official said on Wednesday.

A gas structure at Sundalpur in southern Noakhali district has been discovered by the state-run Bangladesh Petroleum Exploration Company (Bapex).

"Today we started a well test to determine its exact reserve," said Bapex Managing Director Mortuza Ahmad Faruque.

"The reserve could be small but we are expecting 10-12 million cubic feet of gas may be extracted per day and it would be commercially viable," he told Reuters.

The gas has been found 1,400 metres under ground and the pressure is good, he added.

Bangladesh, with about 13 trillion cubic feet of probable and recoverable gas reserves, has been facing an acute supply crisis, with production totalling around 2,000 million cubic feet per day against demand of more than 2,500 mmcfd.

The widening gap prompted the government to stop giving new gas connections to industrial and manufacturing firms as well as households since 2010, curbing economic growth.

The government, under growing public furry over utility shortages, hopes to add about 1 billion cubic feet of natural gas per day to the national grid by the end of 2012, with a deal signed with U.S. energy giant ConocoPhilips to explore gas and oil in the Bay of Bengal. (Reporting by Ruma Paul; Editing by Anis Ahmed and Jason Neely)

Energy-hungry Bangladesh strikes new gas reserve | Agricultural Commodities | Reuters

 

[Skies]

Clarkson professor to advise Bangladesh government on air quality

CLEAN AIR: Clarkson professor will travel to Bangladesh, on behalf of World Bank
By GABRIELLE HOVENDON
TIMES STAFF WRITER
WEDNESDAY, AUGUST 17, 2011

Watertown Daily Times | Clarkson professor to advise Bangladesh government on air quality

POTSDAM — Clarkson University’s Philip K. Hopke wants to clear the air overseas.

Mr. Hopke, director of Clarkson’s Institute for a Sustainable Environment and Clarkson’s Center for Air Resources Engineering and Science, has been named a World Bank air quality consultant to the People’s Republic of Bangladesh.

As a consultant, Mr. Hopke will spend two to three months annually for the next three years working to strengthen Bangladesh’s air-quality management.

“The World Bank has been actively helping several governments in South Asia to improve their air quality, particularly in their capitals,” Mr. Hopke said. “At this stage they have loaned $62 million to the government of Bangladesh to help them, particularly in the areas of the transport sector and in brick production, to make changes to significantly improve air quality.”

Dhaka, the capital of Bangladesh and one of the world’s most populous cities, has a population of more than 14 million people and a concentration of airborne particular matter that exceeds World Health Organization guidelines. Emissions from brick kilns, diesel-run vehicles, refuse burning and road dust have contributed to rising levels of pollutants in the city.

According to Mr. Hopke, the government of Bangladesh has already worked to switch its vehicles from liquid fuels to compressed natural gas, but there remains much work to do in the country.

A member of the U.S. Environmental Protection Agency’s Clean Air Scientific Advisory Committee, Mr. Hopke also has been collaborating with scientists in Bangladesh about air quality problems and concerns for the past two decades.

“It’s a matter of helping them plan, helping train them to use tools that are available for quality planning and come up with a comprehensive strategy that will both be cost-effective and practical to implement,” he said. “I’d like to see them making significant movement towards a comprehensive long-term strategy that will get their air quality in line with international norms for the protection of public health.”

Mr. Hopke, who has been a professor at Clarkson since 1989, was approached by the World Bank for the consultancy, which will begin on Nov. 1.

According to the World Bank’s Clean Air and Sustainable Environment Project, a 20 to 80 percent reduction in exposure to urban air pollution in Bangladesh would help save at least 1,200 lives and $170 million in health costs annually.

“Now people have recognized that this really is a problem for both health and further development, and that’s part of the reason why the World Bank has gotten involved in a number of these locations,” Mr. Hopke said. “We hope that we can work with them to really improve air quality. They’ve made some good steps, and we want to just keep them moving in the right direction.”