The New Nation - Internet Edition

IMF head wants $1.2 trillion spent to boost economy

AFP, Tripoli

Up to two percent of the world's income, or 1.2 trillion dollars, should be spent on reviving the global economy, the head of the International Monetary Fund said in Tripoli yesterday.

Dominique Strauss-Kahn, the fund's managing director, called for "massive" and coordinated use of budgetary policy to overcome the crisis.

"It is time to use all instruments," he said at the opening of a conference on economic integration in the Maghreb region, urging a budgetary "push" of two percent of countries' gross domestic product.

On a world scale, this would add up to 1.2 trillion dollars.

"A coordinated budgetary policy sharply increases the effect of the policy," Strauss-Kahn said.

He indicated that he would favour a further interest rate cut by the European Central Bank. "In Europe, there are still possibities for flexibility" in monetary policy, unlike in countries such as the United States and Japan, he said.

The ECB cut its lead rate by 50 basis points on November 6, to 3.25 per cent.

Trading of Shinepukur Ceramics, ACI Formulations begins

NATION BUSINESS REPORT

The Shinepukur Ceramics Limited (SCL) and ACI Formulations Limited (AFL) made debut yesterday (Tuesday) in the country's both the bourses under the direct listing regulations.

The two issues were the first private companies traded under direct listing regulations after five-state owned enterprises.

Shinepukur Ceramics, a subsidiary of Beximco Limited, offloaded 3,50,11,800 ordinary shares of Tk 10 each, totaling Tk 350 million. This is 50 percent of its existing paid-up capital of Tk 700 million.

The Earnings per share (EPS) of SCL is Tk 1.97 and its net asset value (NAV) is Tk 15.66. It has posted net profit Tk 130 million last year.

Starting commercial operation in 1999, the SCL, the subsidiary company of Beximco Group, has two independent units producing high quality porcelain and bone china tableware.

The porcelain unit has a capacity of 65,000 pieces a day, while the capacity of the bone china unit being 10,000 pieces a day.

Speaking at a projection meeting in a city hotel on Monday, SCL Chairman Nazmul Hassan said Shinepukur ceramics is the single largest exporter of ceramic tableware of the country and contributes around 50 percent of the total export of tableware from Bangladesh.

Beximco Group Deputy Chairman Salman F Rahman was present in the meeting.

The production capacity of bone-china will be doubled and porcelin will be increased by 33 per cent because of their huge market demand, Nazmul Hassan further said.

The Shinepukur has successfully developed a substantial export market for the top-of-the-line bone china and porcelain tableware and the customer portfolio now includes world-renowned tableware companies in the UK, USA, Spain, Italy, Australia, New Zealand, Norway, Sweden, Russia, UAE, Denmark, Germany, France, Mexico, and Turkey.

The fund raised from the stock market will be utilized for investment in Beximco's subsidiary companies (including SCL) for expansion of their capacities, repayment of their debts, diversification of their businesses and providing their working capital.

The AFL will offload 89,87,500 ordinary shares of Tk 10 each.

ACI, which has investments in pharmaceuticals, consumer brands and commodity products, agribusinesses, crop care and public health, livestock and fisheries, fertiliser and seeds business, made net profits of over Tk 362 million in 2007. The company posted net profits of Tk 171 million as of June 30.

EPS of the company, which listed on the stock exchange in 1976, were Tk 21.04 in 2007. As of June 30, the EPS was Tk 10.63.

ACI's paid-up capital is Tk 162 million.

Rupali Bank to provide Tk 200m loan to BRAC

NATION BUSINESS REPORT

Rupali Bank will give Tk 200 million loan to Bangladesh Rural Advancement Committee (BRAC) under the bank's 'NGO Linkage Programme'.

A loan disbursement agreement in this connection was signed by Rupali Bank Manager Md Amir Hamza and BRAC Director (finance and accounts) S N Kairy on behalf of their respective organisations in the city on Thursday.

The three-year tenure loan will be utilised by BRAC in agricultural sector under its micro-finance programme.

Rupali Bank General Manager Md Enamul Islam Khan, Assistant General Manager (village loan) Md Sirajuddin, Assistant General Manger (north) Md Mujibur Rahman, BRAC Director (public affairs) M Anwarul Haq and General Manager (finance) Md Abdus Sattar were present during the signing ceremony at BRAC Centre.

Darsana Sugar Mills goes into production from Nov 28

BSS, Chuadanga

Production at Darsana Sugar Mills (DSM) for the current season will begin from November 28, according to mills management sources.

The DSM has fixed a target to produce 12,800 metric tons of sugar during this season by crushing 1,60,000 metric tons of sugarcane.

The recovery percentage of sugar in the mills during the season has been fixed at 8 percent. The purchasing price of sugarcane has been fixed at Taka 70.73 per maund at the mills gate and Taka 69.12 per at purchasing centres of the mills zone area.

There are standing matured sugarcane on 14000 acres in the mills zone area, which are to be crushed in the mills during this crushing season.

Meanwhile, necessary preparations have been completed to start production at the mills for the current season.

Tk 1.85 billion cash subsidy released to various sectors

NATION BUSINESS REPORT

The government has released Tk 1.85 billion cash subsidy to the major exporting sectors to facilitate payment of salaries and benefits to their workers before the Eid-ul Azha festival.

Following the government order, the finance ministry has released the fund for distribution to the entitled sectors and sub-sectors through the Bangladesh Bank (BB).

Of the Tk 1.85 billion, the ready-made garments (RMG) sector will receive over Tk 870 million, frozen foods Tk 550 million and leather Tk 240 million.

In the budget for the fiscal 2008-09, the government allocated Tk 10.0 billion in cash incentives for exporters. Of the amount, it has released Tk 3.05 billion ahead of Eid-ul Fitr.

The government has introduced the cash incentives for the leading export earners to help them stay competitive in the international market.

Bad loans rise slightly in July-September

NATION BUSINESS REPORT

Default loans in the country's banking system have increased slightly to Tk 25,075 crore during the July-September period this year, led by the sliding loan recovery of private sector banks.

The amount with the country's 49 commercial banks was Tk 25,000 on June 30 2008, Bangladesh Bank data showed.

Banks had 12.34 per cent of their total loans in bad assets on September 30, which was 13.23 per cent in the same period 2007.

Four state-owned banks' classified loan and provision declined by about Tk 1,000 crore in the first quarter of the fiscal year, but private commercial banks saw a rise of the same amount in their bad debts during the period.

Classified loans of four state lenders - Sonali, Janata, Agrani and Rupali banks - stood at Tk 14,343 crore, which was 29.34 per cent of their total outstanding loans, in September this year, down from Tk 15, 289 crore in June.

Bad loans of 30 private banks soared to Tk 6,716 crore, which was 5.40 per cent of their total loans, from Tk 5,752 crore. Specialized state-owned banks had Tk 4,912 crore in bad assets as of September 30 while classified loan of foreign banks stood at Tk 249 crore.

Citigroup to slash 50,000 jobs worldwide

AFP, New York

US bank Citigroup said on Monday it would cut up to 50,000 jobs worldwide as the company struggles with the global financial crisis and four consecutive quarters of heavy losses.

The company said the new job reductions would shrink its global workforce to 300,000 employees. Citigroup said Friday it would make further job cuts to cope with the financial crisis, and announced its top executives had bought up 1.3 million shares to show confidence in the banking giant.

RK Group MD Abdul Hamid gets Nawab Sir Salimullah Gold Medal Award '08

NATION BUSINESS REPORT

Md. Abdul Hamid, Managing Director, R.K Group of Industries has been awarded with Nawab Sir Salimullah Gold Medal Award 2008 for his glorious contribution in Liberation war of the Country and in recognition of his outstanding contribution in the field of social work.

The Gold Medal Award Ceremony was organized by Nawab Sir Salimullah Foundation and given in a colorful Ceremony at Hotel Sheraton, Winter Garden Hall on November 12. Eleven other distinguished personalities of the country have also been awarded with the gold Medal for their contribution in economic and social sector of the country.

Dr Saleh Uddin Ahmed, Governor, Bangladesh Bank was the chief guest and he gave away the award among the winners.

Presided over by Hasinur Rahaman, former secretary President of the Foundation, the function was addressed by former Chief Justice Chowdhury ATM Masud, Chairman Board of Revenue Abdul Mazid, former MP Begum Shamsunnahar Khawja Ahsanullah, Vice President of the Foundation Mujibur Rahaman, General Secretary Muniruzzaman.

They all highlighted the achievements of Nawab Sir Salimullah and his contribution towards our national development.

Workshop on 'Monga' held in Lalmonirhat

BSS, Lalmonirhat

Speakers here at a workshop on Monday stressed the essence for GO-NGO collaborations for eradicating seasonal curse of monga once for all from the district and the area as a whole.

OVA, an NGO organised the workshop titled 'Monga Situation and its Eradication' with the assistance of Oxfam of Great Britain at Motiar Rahman Smriti Auditorium in Lalmonirhat district town for the officials and activists of different GOs and NGOs. Swapna Zaman, President of OVA, chaired the workshop that was attended by Additional Deputy Commissioner (General) of Lalmonirhat Abdul Karim as the chief guest.

India sees 9 pct growth next year

AFP, New Delhi

India insisted yesterday its economy would rebound next year from the impact of the global financial crisis, saying it expected to return to "much better growth" of nine percent.

"What's required now is confidence, courage and taking the steps that are necessary to compensate for the ill-effects of a world slowdown," Finance Minister P. Chidambaram told an international business meeting.

"We will be back to a high growth rate (of nine percent) in the second half of the financial year 2009/10," he said in New Delhi.

"We will bounce back to much better growth rates."

Chidambaram said the lowest official forecast for growth in Asia's third- largest economy was seven percent for the year to March 2009 which was not "an occasion for wearing sack cloth and ashes" when compared to anaemic growth rates abroad.

India's economy has grown by at least nine percent for the past three years.

The minister said it would be "helpful" if domestic interest rates could come down further but that authorities could not take their eyes completely off inflation, riding at close to 10 percent. "But the bias has shifted in favour of (stimulating) growth," he told the India World Economic Forum.

Inflation hits 14 pct in Nepal

XINHUA, Kathmandu

Driven by a significant rise in food and beverage prices besides non-food and services, inflation based on consumer price index swelled to 14.1 percent in mid- October 2008, against 6.3 percent during the corresponding period in the previous year in Nepal.

According to Tuesday's The Kathmandu Post daily, inflation was higher in mid-October than in mid-September when prices had gone up by 13.5 percent. Nepal Rastra Bank (NRB), the central bank of the country, said in a statement on Monday that inflation had more than doubled in review period this year as the food and beverage group witnessed a 15.2 percent rise in prices and the non-food and service group went up by 12.9 percent. Their prices had gone up by 9.5 percent and 2.9 percent respectively during the same period last year.

Sugar products became dearer by 39.5 percent while the price of oil and ghee-based products shot up by 35.4 percent. Sugar had gone down by 18.4 percent in the same period last year. Oil and ghee had witnessed a price rise of 12.8 percent.

The price index of transport and communication and building materials soared by 23.1 and 18.3 percent respectively this year against minus 0.5 and 2.5 percent last year.

Krishi Bank holds conference at Narayanganj

Bangladesh Krishi Bank held a conference for its branch managers and field officers of Narayanganj region at Narayanganj Club auditorium recently, says a press release.

Managing Director of the bank Md Mukter Hussain spoke as the chief guest while Chief Regional Manager of Narayanganj region Md ShafiquI Alam presided over the conference.

Divisional General Manager of the bank of Dhaka Md Siddiqur Rahman and all branch managers and field officers of the region were also present in the conference, among others.

The meeting reviewed the performance of the branches of Narayanganj region during the first quarter of the financial year 2008-09 and emphasised on achieving all the business targets within the remaining period.

Mukhter Hussain called upon the branch managers to contribute towards strengthening the financial base of the country's agricultural economy by giving loans to the core sectors like crop, fisheries and livestock.

Mercantile Bank to send remittance thru' post offices

NATION BUSINESS REPORT

Mercantile Bank Limited has recently entered into an agreement with Bangladesh Post Office (BPO) for distribution of inward foreign remittances.

BPO will provide services through its 450 designated outlets under the EFT arrangement across the country.

As a result, a new horizon has been opened for the bank to extend its remittance services to the doorstep of beneficiaries easily, quickly and safely.

BPO Director General Mobasherur Rahman and Mercantile Bank Managing Director and CEO Dewan Mujibur Rahman signed the agreement on behalf of their respective organisations. Mercantile Bank Deputy Managing Director MA Shahjahan, Senior Executive Vice President MA Yousuf Khan, Bangladesh Post Office additional director generals AKM Rafiqul Alam and Abdur Rashid and Director AKM Rafiqul Islam were also present on the occasion.