BD may slip into 'debt crisis' shortly

[Nabil365]

Yes, you do have a point here that presently BAL is thoroughly corrupt, while BNP eleven years back was partially corrupt. Hate to admit the fact that Jamati Islami are clean as a slate,not a single charge of corruptions against them. Learn to call a spade a spade.

PARTIALLY?Nice try,both parties are fully corrupted.

 

[TopCat]

Hate to disagree, to your remarks, why should such "High Risks" ventures be entertained in the first place? Please answer in pure economical terms not emotional jargon's.

If you dont want to push the new avenues other than garments then you can stick to private banks with low risk financing.

 

[bdslph]

if happen i wont be surprised
but this will collapse everything

 

[Banglar Bir]

If you dont want to push the new avenues other than garments then you can stick to private banks with low risk financing.

What exactly are you trying to state as “High Risk Projects” and Garments Industries?
Just don’t have the intention to write a Thesis paper on Banking, will try to be crisp and to the point.

Firstly, all Banks and financial institutions’ private or State owned, are guided by the exact same rules and regulations, as determined by the Ministry of Finance from time to time and implemented by the Central Bank, i.e. Bangladesh Bank or Central Bank of England in the case of the U.K. There are no separate special waivers for Government owned Banks.

Secondly, any genuine investor, before applying for loans, has to submit their profitable Project Profile along with substantial collateral assets. These are mandatory obligations. Only, once the Board of Directors are satisfied, after through scrutiny about the viability of the said project, the loans is sanctioned, that to in a deferred installments basis,that's the normal rule,however if any party is willing to split the loans with the bank concerned management,the scenario is just the reverse.

Any idea as to why the rates of interests in Banks are plummeting? The answer is there are too many depositors and no genuine investors ready to invest in such an unfriendly investment climate, where bribes and Party thugs demand ransom, in every sphere.

Now, returning back to the RMG Sector with backward linkage, any idea that 80% of our foreign exchange earnings are solely from this sector, while the remaining 20% comes from all other exportable products inclusive of foreign wage earners remittance.

Nationalized Banks, or in other words State owned commercial enterprises DID NOT exist prior to 1971.All private sectors Industries and Commercial organisations were NATIONILIZED, post 1971, during the one party BAKSAL regime, in line with the post USSR socialist era pattern. Could you kindly state the name one bank in the U.K, where you claim to reside, that is State owned?

The main failure of our Finance Minister lies in regulating the Banking sector and the Securities’ and Stock Exchange. In our life time we never heard of Billions of Dollars being illegally siphoned off from the State owned Banks including the Bangladesh Bank or of “Bubble Burst” of our stock exchange, once BAL was in power in 1996 and the second time in recent years, rendering millions of small investors in complete ruins.

Have any actions till date been taken against these known powerful Party funders or those of tycoons of Hall Mark, Destiny, etc, groups.

Could you please name a public Mega Project funded by these “White Elephants”, so called State owned banks other than aiding the Political elites in looting billions of dollars of the small time depositors and bailing out the ailing finically crippled Governments with the private depositors fund?

Kindly browse through the recent related threads uploaded in this forum, maybe your doubts will be clarified, that to if you avoid making an “Ostrich Approach”. Perhaps we could then continue our fruitful discussions’.

 

[TopCat]

What exactly are you trying to state as “High Risk Projects” and Garments Industries?
Just don’t have the intention to write a Thesis paper on Banking, will try to be crisp and to the point.

Firstly, all Banks and financial institutions’ private or State owned, are guided by the exact same rules and regulations, as determined by the Ministry of Finance from time to time and implemented by the Central Bank, i.e. Bangladesh Bank or Central Bank of England in the case of the U.K. There are no separate special waivers for Government owned Banks.

Secondly, any genuine investor, before applying for loans, has to submit their profitable Project Profile along with substantial collateral assets. These are mandatory obligations. Only, once the Board of Directors are satisfied, after through scrutiny about the viability of the said project, the loans is sanctioned, that to in a deferred installments basis,that's the normal rule,however if any party is willing to split the loans with the bank concerned management,the scenario is just the reverse.

Any idea as to why the rates of interests in Banks are plummeting? The answer is there are too many depositors and no genuine investors ready to invest in such an unfriendly investment climate, where bribes and Party thugs demand ransom, in every sphere.

Now, returning back to the RMG Sector with backward linkage, any idea that 80% of our foreign exchange earnings are solely from this sector, while the remaining 20% comes from all other exportable products inclusive of foreign wage earners remittance.

Nationalized Banks, or in other words State owned commercial enterprises DID NOT exist prior to 1971.All private sectors Industries and Commercial organisations were NATIONILIZED, post 1971, during the one party BAKSAL regime, in line with the post USSR socialist era pattern. Could you kindly state the name one bank in the U.K, where you claim to reside, that is State owned?

The main failure of our Finance Minister lies in regulating the Banking sector and the Securities’ and Stock Exchange. In our life time we never heard of Billions of Dollars being illegally siphoned off from the State owned Banks including the Bangladesh Bank or of “Bubble Burst” of our stock exchange, once BAL was in power in 1996 and the second time in recent years, rendering millions of small investors in complete ruins.

Have any actions till date been taken against these known powerful Party funders or those of tycoons of Hall Mark, Destiny, etc, groups.

Could you please name a public Mega Project funded by these “White Elephants”, so called State owned banks other than aiding the Political elites in looting billions of dollars of the small time depositors and bailing out the ailing finically crippled Governments with the private depositors fund?

Kindly browse through the recent related threads uploaded in this forum, maybe your doubts will be clarified, that to if you avoid making an “Ostrich Approach”. Perhaps we could then continue our fruitful discussions’.

You can roam with all those profitable profile but private bank will hardly explore new enterpreneur or new business. They are mostly in trading and lc business or refinance an existing good borrower.

Govt banks work in a complete different way. For instance you wont be able to find a private bank to finance in villages or take collateral outside major metro cities whereas govt bank will walk an extra mile if you can put up with their bureucracy.

I am just talking about the ground reality.

 

[Banglar Bir]

I am just talking about the ground reality.

2:54 PM, June 20, 2017 / LAST MODIFIED: 01:24 PM, June 20, 2017
Tk 2000cr for refinancing state banks injustice: Bablu
JP MP blasts Muhith at JS, asks him to quit
Star Online Report

Jatiya Party lawmaker Ziauddin Ahmed Bablu today blasted Finance Minister AMA Muhith for allocating Tk 2000 crore in a bid to refinance different state banks in the proposed budget for FY 2017-18.
READ more: Muhith comes under fire at JS
Terming the budget proposal “injustice”, the JP parliamentarian called upon the finance minister to quit from his post.

Also READ: No excise duty on school banking, says Muhith

During a budget discussion at the Jatiya Sangsad, the main opposition party lawmaker said hundreds of crores of taka have been looted and laundered from different state banks but the finance minister has failed to take any action against the looters.

“Furthermore, he (Muhith) had mentioned in the proposed national budget that Tk 2000 crore will be allocated to refinance different state banks,” Bablu stated.

“These are depositors’ money, he cannot give the money to different state banks on the purpose of refinancing. It is totally injustice,” he said.

The finance minister should quit from his post for this “disastrous” and “oppressive” budget proposal, he added.
.thedailystar.net/politics/tk-2000cr-refinance-state-banks-injustice-jatiya-party-lawmaker-ziauddin-ahmed-bablu-bangladesh-national-budget-politics-1422925?utm_source=dailystar_website&utm_campaign=newsalert&utm_medium=newsurl&utm_term=all&utm_content=all

 

[Banglar Bir]

 

[Banglar Bir]

Govt banks work in a complete different way.
For instance you wont be able to find a private bank to finance in village.

Nope, all banks function under the same set of guidelines.
What about micro credit organisations.i.e, Grameen and BRAC Banks, along with numerous genuine NGO's working in almost all villages scattered all across the entire countryside?
Anymore bright suggestions?

 

[nang2]

As soon as one country does some debt financing, some story will pop up warning that the country will be in crisis, often without any data to back it up.

 

[Banglar Bir]

As soon as one country does some debt financing, some story will pop up warning that the country will be in crisis, often without any data to back it up.

What a moronic post, what relation does debt financing has to do with Banks?

 

[Banglar Bir]

12:00 AM, June 22, 2017 / LAST MODIFIED: 02:31 AM, June 22, 2017
News Analysis: Muhith now scapegoat

Shakhawat Liton

On Monday, some ruling Awami League lawmakers raised a hue and cry in parliament.

They blamed the finance minister for failing to act against those allegedly involved in banking sector scams, and blasted him for allocating Tk 2,000 crore in the proposed budget for recapitalisation of a number of state-run banks suffering from capital deficit following the scams.

The next day, some MPs from opposition Jatiya Party intensified the attack on AMA Muhith and demanded his resignation. They also demanded that Muhith be sued for “criminal offence” for offering recapitalisation to the graft-riddled banks -- BASIC, Sonali and Rupali.

But they might all have forgotten the reality on the ground. They might also have overlooked what Muhith said two years ago.

On June 29, 2015, the finance minister told parliament that action could not be taken against the scamsters because they “belonged in his own house”.

But is Muhith alone responsible for this non-action against these fraudsters? And was it his personal choice to provide the scam-hit banks with fresh capital?

Since the AL took office in 2009, taxpayers have paid Tk 14,505 crore for the so-called recapitalisation.

Many of us can recall how reluctant the government had been in catching the big bank scammers like Bismillah Group, Hallmark and the infamous former chairman of BASIC Bank Abdul Hye Bachchu. That Bachchu was ruining BASIC Bank, once a sound financial institution, was in everybody's knowledge. Only the government refused to act.

While the government has been so generous about the shady businessmen, it has fallen short of caring for the banks. Instead of reforming the banking system so that such ill practice cannot take place, the government has been following laissez-faire capitalism approach.

The day the budget for FY 2015-16 was passed in parliament, Muhith himself revealed the reality.

He said the government could not take punitive action against a top official of Sonali Bank for his involvement in the Hallmark loan scam due to interference from “our own men”.

“A deputy managing director was sent to jail. [But] a top official of Sonali Bank could not be sent to jail, because of the backing of our own people. I am very annoyed about this,” said Muhith.

In and outside of parliament, he on several occasions said Bachchu was involved in a loan scam involving Tk 2,200 crore.

An investigation by the finance ministry also found it to be true. But no action was taken against Bachchu.

Muhith cannot deny that he has a responsibility to bring discipline in the banking sector. But he cannot be solely liable for the job. The will of the government as a whole has been, and still is, a big factor as to why action cannot be taken against such scamsters.

Similarly, it was the government's decision to offer recapitalisation to the scam-riddled banks. Every year, the cabinet approved the budgetary proposals and parliament endorsed them. But all of a sudden, some MPs changed their mind forgetting what they did in the past years.

It was surprising that two ministers also blasted Muhith earlier for proposing a tax hike on bank savings. The ministers are part of the cabinet that approved the budgetary proposals. But when they opposed the proposal in parliament, they contradicted themselves. This goes against norms and practice of the parliamentary democracy and against the collective responsibility of the cabinet.

MPs should not put all the blame on Muhith for all the bad things in the banking sector. Without launching a personal attack, MPs should question the government's role in taking action against the people who plundered the banks. They should also examine the Anti-Corruption Commission's failure to act against the scamsters.

Is it rational to scapegoat Muhith alone?
http://www.thedailystar.net/backpage/news-analysis-muhith-now-scapegoat-1423804

 

[TopCat]

Nope, all banks function under the same set of guidelines.
What about micro credit organisations.i.e, Grameen and BRAC Banks, along with numerous genuine NGO's working in almost all villages scattered all across the entire countryside?
Anymore bright suggestions?

Yu have no clue what you talking about.

 

[Banglar Bir]

Yu have no clue what you talking about.

Kindly elaborate further,maybe could be enlightened by learning few more facts from you. Thanks.

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[Mage]

What a moronic post, what relation does debt financing has to do with Banks?

This thread is about BD going into debt crisis while privatization of banks is just a small point here.


And no BD is not going into debt crisis. Look below in similar threads "Falling BD Debt/GDP Ratio" by UKBengali. Read the posts in that thread to understand things better.

 

[Banglar Bir]

This thread is about BD going into debt crisis while privatization of banks is just a small point here.
.

Got ourselves entangled in the crisis in the Banking sector, instead.
Carry on good countrymen, hold your heads high and keep all threads alive and knowledgeable. Eid Mubarak in advance and keep well. Salam.