The New Nation - Internet Edition

Staff Reporter

The total amount of classified loan in the country's local and foreign banks is 23254 crore of taka as on September 30, an increase of 3156 crore taka in nine months from January 2007. The four nationalised commercial banks combine (recently denationalised) witness an amount of taka 13525 crore i.e. 58 percent of the total classified loans.

When the repayment date of a loan expires and then exceeds certain number of days, it becomes classified, which is of three categories-substandard, doubtful and loss. It is not enough to quote the figure only unless laws of the land are reformed to get back that money within the quickest possible time. Banks sanction loans in the form of overdraft, cash credit, LIM, agricultural, fishery and industrial or as the name may be to an individual, business enterprises, companies and corporations against either the equitable or the registered mortgage of the land, FDR, sanchaypatra and other assets as the sanctioning authority consider acceptable in line with the Bangladesh Bank's guidelines. The sad part is that banks cannot directly recover their money but have to file money or title suit first in the civil court. If the court gives judgment in favour of banks, then execution suit is to be filed and thereafter the court puts the immovable mortgaged properties on auction. But as the very few bidders take part in the auction and quote a negligible amount considering the value thereof, banks themselves take part.

Thus, the disposal of a case takes a long time; and longer time in case the borrowers file appeal in the higher courts. The moment a bank files suit, no further interest can be charged till the disposal. On the other hand, the borrower usually does not come forward for settlement through negotiation. Banks generally do not want to file suit for the recovery of the bank money. They do it when all other measures fail. They write letters to the borrowers requesting to repay the bank loans, even through negotiation. But the response in most cases is disappointing.

As a result, a bank authority goes to the court. It is widely believed that political intervention is the cause of non-recovery of bank money. However, in view of vast aount of bank loan becoming classified, it has been imperative to reform the existing laws of the country so that quick recovery thereof becomes possible. However, banks do not face troubles in quashing a loan account if it is sanctioned against FDR or sanchaypatra. They cash those as per agreement signed before disbursement begins. A loan against FDR or sanchaypatra is thus considered secure.

Banks face troubles in case of non-recovery of bank loans because they are to pay interests under compulsion to the depositors.

A Press Conference regarding 'Code of Conduct for the Employers for Informal Child Labour Sector' was held in Hotel Abokash auditorium December 18 organised jointly by Together with Working Children (Shromojibi Sishuder Sathe Amra) TWC and Save the Children Sweden-Denmark SCSD.

Ms. Geeta Chakroborty from Ain 0 Saalish Kendro. presented the titled paper at the conferencc disseminating information on the issue gathered through survey and filed work of TWC partner NGOs.

Ms. Nishat Afroz Mirza of SCSD, Ms. Moslema Bari, Executive Director, Community Participation & Development (CPD), Fazlul Haque Chowdhury, General Secretary.

Social & Economic Enhancement Programme (SEEP); Ms. Shahin Akter Doli, ED, Naari Moitree; Shah Alam Manik. INCIDIN Bangladesh; Tipu Sultan, Society for Underprivileged Families (SUF) attended as the representatives of TWC partner NGOs.

The speakers stated child labour as one of the severest forms of exploitation and abuse throughout the world today. They said it had been widespread in Bangladesh mainly in the agriculture and industrial sector. With accelerating urbanisation. child labour is on the increase at informal sectors too. Given the state of poverty, children are frequently used as a means of financial support and even to provide mobility for poor families.

According to national statistics, there are 7.4 million (National Child Labor Survey 2002-2003 done by ILO and Bangladesh. Bureau of Statistics) working children in our country with an age bracket of 15-17. 93 pc them are engaged in the informal sector. Bangladesh has ratified the CRC but economic policies have not brought any significant reduction in child labour.

Given the reality. NGOs together as TWC have taken initiatives to develop and introduce a code of conduct for the employers in the informal child labour sector, which will ultimately guard the employers' standards of behaviour.

Not only would it be a guideline for the change in present exploitative conditions of children the speakers at the conference told. The discussants shared their experience. exchanged views with the journalists. answered to their queries and put focus on different related issues at the conference.

Together with Working Children (TWC) is a network of six NGO's working for the children. They are working in light of the UN convention regarding children.

AFP, Singapore

Oil prices were lower in Asian trade on Wednesday following a rally overnight in the United States, but should remain high amid tight supplies of heating fuel ahead of the winter season, dealers said.

New York's main contract, light sweet crude for November delivery, was down 17 cents to 81.27 US dollars per barrel from its close of 81.44 dollars in late US trades.

The contract had risen 1.47 dollars in New York overnight as traders mulled prospects for US economic growth and assessed the outlook for winter heating oil supplies.

Brent North Sea crude for November delivery was down 34 cents to 78.63 dollars.

"Traders are starting to worry about the heating oil inventory in the US market," said Victor Shum, an analyst with energy consultancy Purvin and Gertz in Singapore.

"In the summer, traders worried about the gasoline level. Now, traders are starting to worry about the heating oil level," he said, referring to the expected increase in heating fuel during the Northern Hemisphere winter later this year.

Traders focus on reserves in the United States because the country is the world's biggest energy consumer, ahead of number two China.

The US Department of Energy's (DoE) weekly report released Wednesday showed stockpiles of distillates, including heating fuel, unexpectedly dropped by 1.2 million barrels to 135.9 million barrels during the week ended September 28.

Industry analysts had forecast a rise of 1.3 million barrels. Crude oil rose by 1.2 million barrels last week, the DoE report showed. Most analysts had expected oil reserves to fall.

"The overall oil market remains fundamentally tight in the fourth quarter," Shum said. Last Friday, Brent oil hit a record high 81.05 dollars per barrel, while New York crude struck an all-time peak of 84.10 dollars last month.

AFP, Singapore

Singapore on Wednesday raised 2007 growth targets to 7.5-8.0 percent from 7.0-8.0 percent after the economy grew at a faster pace in the third quarter on the back of a strong performance in the financial and construction sectors.

In the three months to September, gross domestic product (GDP) grew an annual 8.9 percent, faster than the 8.7 percent in the previous quarter, the ministry of trade and industry said.

On a seasonally adjusted quarter-on-quarter annualised basis, the economy grew 4.3 percent from 14.5 percent in the June quarter.

While the September quarter was below government estimates of 9.4 percent, the ministry said average growth in the first three quarters of 2007 was 8.1 percent and the momentum was set to continue for the rest of the year.

"Economic growth picked up pace in the third quarter," the ministry said in its review of the three months to September.

Singapore's economy, valued at 210 billion Singapore dollars (146 billion US) in 2006, is highly dependent on external trade which means the city-state is vulnerable to any slip-ups in the world's major markets.

For 2008, the ministry has also raised its growth targets from 4.0-6.0 percent to 4.5-6.5 percent but cautioned external risks such as the troubled US subprime mortgage and high energy costs may slow the economy.

"If the subprime problems worsen and persist, or if oil prices rise further above current levels, there could be a sharper and more protracted slowdown in the US economy," the ministry said.

"This could drag Singapore's GDP growth towards the lower half of the forecast range," it said.

The ministry said the economy was expected to grow at a slower pace in 2008 from this year because of "above-trend growth" in the last four years.

In the third quarter, economic growth was powered by the financial services sector which grew nearly 20 percent, making it the best performing industry during the period.

Growth in the financial services sector was broadbased amid strong domestic banking and offshore lending activties, the ministry said.

The construction sector continued with its strong rebound with 17.7 percent expansion, underpinned by strong building activity in the industrial and commercial segments.