“PM visits to India have been very successful and fruitful”
Information and Broadcasting Minister Hasan Mahmud on Friday said the visit of PM Sheikh Hasina to India has been very successful and fruitful.
“The biggest achievement of the visit is the opportunity to export Bangladesh’s garment products to third countries free of duty using India’s territory. For which Bangladesh has been trying for many years,” said Hasan, also joint general secretary of Bangladesh Awami League.
Expressing his gratitude to the Prime Minister for achieving a lot for Bangladesh through a successful visit to India, Hasan said that the BNP had talked many things about this visit to India, but it should remain silent now as the visit has been successful.
The minister said these as chief guest while addressing Bangladesh Journalists’ Welfare Trust cheque distribution ceremony at S Rahman Hall of Chattogram Press Club (CPC) on Friday noon.
Chattogram Union of Journalists (CUJ) President Mohammad Ali presided over the function while Managing Director of Bangladesh Journalist Welfare Trust Subhash Chandra Badal, CPC President Ali Abbas, Member of Bangladesh Journalist Welfare Trust Kalim Sarwar, Vice President of BFUJ Shahidul Alam, General Secretary of CPC Chowdhury Farid and General Secretary of CUJ Shamsul Islam, among others, addressed the function.
The minister said whatever Bangladesh got from India was achieved by Awami League and incumbent Prime Minister Sheikh Hasina while Khaleda Zia had forgotten to talk about the proper sharing of Ganges water when she visited the neighbouring country.
He said Father of the Nation Bangabandhu Sheikh Mujibur Rahman made an agreement in 1974 and “the enclaves were supposed to be handed over to us under the treaty.”
“Our relationship with India is based on equity. Our government has taken everything from India. In 1974, the Enclave Agreement was signed. No one could bring that enclave under our control except the AL government,” he added.
The AL government under the supervision of Prime Minister Sheikh Hasina had realized the enclaves after many decades of the agreement and the size of the country Bangladesh has increased, he said.
“In fact, our relations with India are excellent, this has been elevated to new heights under the leadership of Bangabandhu’s daughter Janonetri Sheikh Hasina and Prime Minister Narendra Modi. The relation is to create the opportunity to export the products of Bangladesh duty-free to third countries by using the land area of India,” the information minister said.
Terming Journalist Welfare Trust a place of hope for journalists across the country, the minister said if a journalist dies, his family is given a one-time Tk 300,000.
“If a journalist is sick, he is given Tk fifty thousand to two lakh. No country in this sub-continent, including India, Pakistan, Sri Lanka, and Nepal, provided such support to journalists during the Corona period,” he added.
A total of 4,000 journalists have been supported by the government through the Journalist Welfare Trust so far, he added.
Hasan said Bangabandhu’s daughter has established the Bangladesh Journalist Welfare Trust considering the demand for journalists.
“Later, the Prime Minister said, I don’t know how long I will stay in power, I want to make a permanent arrangement for the journalist community. Accordingly, the Journalist Welfare Trust law was passed by parliament. The government gives grants every year. An opportunity to accept donations from well-wishers is also kept here,” he said.
Hasan Mahmud said, “We never consider anyone’s party or opinion in the distribution of welfare trust checks.”
“I belong to the party, I am the minister of the party government, but when I am performing the duties of the state, I try to see everyone with two eyes equally, so that everyone gets the support of the state. Those who stand in front of the Press Club and raise their voices against us, we have also helped them from the Trust,” the broadcasting minister said.
He said, “Sometimes we see that there is an attempt to spread confusion in Bangladesh by taking advantage of the situation in the world.”
“Some newspapers and electronic media are trying to create confusion among people by hiding the world situation and exaggerating the situation in Bangladesh. This is nothing new. Even when we started the construction of Padma Bridge, they had also spread confusion,” he added.
Hasan requested the journalist leaders across the country, including Dhaka-Chattogram, and every media house to arrange group insurance for journalists as per the Wage Board.
Later, the information minister handed over cheques of assistance to 36 journalists of Chattogram.
Despite Banking turmoil in US, Interest rates Hikes
The US central bank has raised interest rates again, despite fears that the move could add to financial turmoil after a string of bank failures.
The Federal Reserve increased its key rate by 0.25 percentage points, calling the banking system “sound and resilient”.
But it also warned that fallout from the bank failures may hurt economic growth in the months ahead.
The Fed has been raising borrowing costs in a bid to stabilize prices.
But the sharp increase in interest rates since last year has led to strains in the banking system.
Two US banks – Silicon Valley Bank and Signature Bank – collapsed this month, buckling in part due to problems caused by higher interest rates.
There are concerns about the value of bonds held by banks as rising interest rates may make those bonds less valuable.
Banks tend to hold large portfolios of bonds and as a result, are sitting on significant potential losses. Falls in the value of bonds held by banks are not necessarily a problem unless they are forced to sell them.
Authorities around the world have said they do not think the failures threaten widespread financial stability and need to distract from efforts to bring inflation under control.
Last week, the European Central Bank raised its key interest rate by 0.5 percentage points.
The Bank of England is due to make its own interest rate decision on Thursday, a day after official figures showed that inflation unexpectedly shot up in February to 10.4 percent.
Federal Reserve chairman Jerome Powell said the Fed remained focused on its inflation fight. He described Silicon Valley bank as an “outlier” in an otherwise strong financial system.
But he acknowledged that the recent turmoil was likely to drag on growth, with the full impact still unclear.
Forecasts released by the bank show officials expect the economy to grow just 0.4 percent this year and 1.2 percent in 2024, a sharp slowdown from the norm – and less than officials projected in December.
The announcement from the Fed also toned down earlier statements which had said “ongoing” increases in interest rates would be needed in the months ahead.
Instead, the Fed said: “Some additional policy firming may be appropriate”.
The moves “signal clearly that the Fed is nervous”, said Ian Shepherdson, chief economist at Pantheon Macroeconomics.
Wednesday’s rate rise is the ninth in a row by the Fed. It lifts its key interest rate to 4.75%-5%, up from near zero a year ago – the highest level since 2007.
Higher interest rates mean the cost to buy a home, borrow to expand a business or take on other debt goes up.
By making such activity more expensive, the Fed expects demand to fall, cooling prices.
That has started to happen in the US housing market, where purchases have slowed sharply over the last year and the median sales price in February was lower than it was a year ago – the first such decline in more than a decade.
But overall the economy has held up better than expected and prices continue to climb faster than the 2% rate considered healthy.
Inflation, the rate at which prices climb, jumped 6% in the 12 months to February. The cost of some items, including food and airfare, is surging even faster.
Before the bank failures, Mr. Powell had warned that officials might need to push interest rates higher than expected to bring the situation under control.
The bank projections show policymakers expect inflation to fall this year – but less than expected a few months ago.
Still, they forecast interest rates of roughly 5.1% at the end of 2023 – unchanged since December – implying the Fed is poised to stop raising rates soon.
Mr Powell described the effect of the recent turmoil as the “equivalent of a rate hike”.
He said the Fed may be able to raise its key rate less aggressively, if the turmoil in the financial system prompts banks to limit lending, and the economy to slow more quickly.
But he repeated that the Fed would not shy away from its inflation fight.
“We have to bring down inflation down to 2%,” he said. “There are real costs to bringing it down to 2% but the costs of failing are much higher.”
’17 Banks Facing Liquidity Crisis over Violating Loan disbursement limit’
Despite Bangladesh Bank’s initiatives to promote good governance in the banking sector, 17 banks have recently violated their loan disbursement limits, and are now embroiled in a severe liquidity crisis.
Having been over-aggressive in providing loans, they are now unable to recover the loans and attract new deposits as desired, according to the latest internal report of the central bank.
The banks should not sanction any new loans until they restore the ratio of their loans to deposits in accordance with limits set by Bangladesh Bank, which regulates the financial sector.
Conventional banks can provide loans of up to Tk 87 for every Tk 100 in deposits, while Shariah-based banks can give loans of up to Tk 92 for every Tk 100 in deposits, according to the rules of Bangladesh Bank.
This is called Advance Deposit Ratio (ADR) or loan-deposit ratio limit in banking terms.
According to the central bank report covering January 1-26 of this year, 17 banks violated the limits set for them on lending orders due to a lack of discipline.
As a result, the concerned banks have been plunged into an extreme liquidity crisis, making it difficult for them to sanction new loans. Some of them are even unable to pay depositors in some cases.
Experts fear that the existing situation has created additional risks for depositors. According to them, irregularities, corruption and ‘ghost loans’ – loans to firms that turn out to be non-existent -are behind the collapse of the banking system’s loan disbursement process.
“In the banking sector, there have been allegations of giving large amounts of ghost loans in recent times. If this continues, the sector will be at risk,” said ABM Mirza Azizul Islam, economist and adviser on finance to the last caretaker government.
Mirza Azizul told, “Lending beyond the limit against deposits disrupts the credit system.”
Besides, the debt collection situation of the banks is not satisfactory now. In such a situation, if the non-performing loans increase further with additional loans, then there is a danger for the bank and its depositors will suffer, he added.
He suggested the intervention of the central bank in these banks immediately.
According to the Bangladesh Bank report, the ADR of National Bank Ltd stood at 98.23 while that of AB Bank was 96.64 in its conventional stream and 103.45 in its Shariah stream.
State-owned Basic Bank’s ADR stood at 91.17, One Bank’s was 89, and multinational National Bank of Pakistan’s was 87.52. Widespread irregularities and corruption have already been reported in these banks.
Apart from this, Community Bank’s ADR was 88.28, NRB Bank at 88.05 and IFIC Bank’s ADR was 87.48, the report states.
Shariah-based Exim Bank’s ADR stood at 100.28, Standard Bank’s at 96.28, Premier Bank’s Islamic Window 155.09 and Bangladesh Commerce Bank’s Islamic Window’s ADR was at 133.26.
Apart from this, the ADRs of five other Shariah-based banks ranged between 93.01 and 104.54.
A managing director (MD) of a private bank told that the lending limit has undoubtedly been set by Bangladesh Bank based on adequate research and global best practices. No bank should have to cross the limit.
“These violations are creating risk in the banking sector. Depositors in particular will be at greater risk. Already some banks and non-bank financial institutions are not able to return money to depositors,” he said, maintaining anonymity.
The central bank has also extended the period of ADR adjustment five times to allow the banks to bring their lending practices in line with the limits.
However, many banks could not coordinate this. In such a situation, Bangladesh Bank even increased the required ADR to improve the overall liquidity situation of the banking sector to maintain the pace in credit flow to the private sector.
The executive director and spokesperson of Bangladesh Bank, Md Mezbaul Haque, told that although some banks may at times find themselves in violation of the ADR set for them, the central bank would under normal circumstances give them time to get themselves back within the limit.
“But if they stay outside the limit for long, then they must be warned and action would be taken accordingly,” Mezbaul said.
Banking transactions to operate 5hrs during Ramadan
Bangladesh Bank (BB) has set the banking transaction time from 9:30 am to 2:30 pm and the banking office time from 9:30 am to 4:00 pm during the holy month of Ramadan.
The central bank issued a circular in this regard on Wednesday (15 March).
The circular stated that all scheduled banks operating in the country will be open from 9:30 am to 4 pm during the holy month of Ramadan.
Banking transactions are normally conducted from 10 am to 4 pm. Bank office hours are from 10 am to 6 pm.
The circular said that the schedule will revert to its original status after the holy month of Ramadan.
- Hakkani Pulp’s Sponsor to sell 50k shares: DSE
- Bourse on Red
- At least 20 Umrah Pilgrims died in Saudi Arabia Bus Crash
- Pioneer Insurance discloses its Dividends
- Index on Negative, Turnover shows slight Gain on DSE
- Salvo Chemical discloses Q2 Financials
- Prime Islami Life Insurance releases its Dividends
- Midland Bank briefs on Q3 Financials
- United Finance declares its Dividends
- UN says: Extraordinary economic dev among BD’s many achievements
- Things that need to do to get the full physical benefits of fasting in Ramadan: says Experts
- PM Sheikh Hasina, President pays homage to Liberation War Martyrs
- Bangladesh Observed Independence Day Today
- South Asian Bourse Shrinks
- Weekly Bourse Collapse