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WB launches $2bn fast-track facility for world's poorest countries

Nation Business Report

The World Bank Group has announced the creation of a $2 billion fast-track facility to speed up grants and long-term, interest-free loans to help the world's poorest countries to cope with the impact of the global financial crisis.

The International Development Association (IDA) Financial Crisis Response Fast-Track Facility, approved by the World Bank's Board of Executive Directors in Washington on Tuesday, will allow the Bank Group to provide rapid funding for social safety nets, infrastructure, education, and health.

"The poorest people will be hit the hardest by the crisis that is likely to get worse next year. Our Global Economic Prospects report projects developing country growth will be 4.5 percent next year, down from 7.9 percent in 2007. We want to help countries manage this downturn with rapid financing to help minimize its impacts and by assisting them in designing supportive policies," said World Bank Group President Robert B. Zoellick.

He also said the facility would fast-track an initial $2 billion of the $42 billion of IDA15 resources available to 78 of the world's poorest countries over the coming three years.

Zoellick said: "We cannot afford business as usual. We need a human rescue package, not just a financial rescue package, and we need a new rapid response capability to make sure the money gets quickly to where it is most needed."

Already 100 million people have been driven into poverty as a result of high food and fuel prices, he said, adding: "We estimate that a 1 percent decline in developing country growth rates will trap 20 million more people in poverty."

The facility will foster rapid Bank response to the pressing needs of IDA countries based on more swift World Bank analysis of those needs. It will finance expenditures needed to maintain economic stability and sustain growth, address volatility, and protect the poor.

World Bank Group Chief also said the operational responses will include funding budget expenditures in infrastructure services, education, and health and social safety nets.

"We hope that our development partners will also benefit from our early assessment of what these countries need to help anticipate, pre-empt and manage the crisis," said the Bank's Managing Director, Ngozi Okonjo Iweala.

The new IDA Facility builds on the Food Crisis facility created earlier this year to support countries hit hard by the food crisis.

Last month the Bank Group announced three other initiatives to help confront the financial crisis including a doubling of the Global Trade Finance Program to $3 billion, a global equity fund, supported by the Government of Japan to recapitalize distressed banks, and a new facility to provide roll-over financing to existing, viable, privately funded infrastructure projects facing financial distress.

IDLC bags ICAB National Award 2007

Nation Business Report

IDLC Finance Limited, a joint-venture multiproduct financial institution, achieved the 8th ICAB National Award for best published Annual accounts and Reports for the year 2007.

The award is given annually by the Institute of Chartered Accountants of Bangladesh (ICAB). Anis A Khan, CEO & Mnaging Director of IDLC received the award from the Chief Guest Dr AB Mirza Md Azizul Islam, Adviser, Ministry of Finance and Planning, at a function organised by the ICAB in the city recently.

IDLC got the 2nd prize for 2007 for its best published accounts and reports in the financial sector (non-banking). The company has been bagging the prestigious ICAB National Award for the last six consecutive years.

Grameenphone submits final IPO application

Nation Business Report

Grameenphone filed its final application for an initial public offering of $65 million (Tk 449 crore) with the Securities and Exchange Commission on Thursday.

GP's board of Directors had earlier approved a proposal for an IPO of its shares, subject to necessary approvals and market conditions, GP said in a statement.

The price for the IPO has been proposed at Tk 7.00 per share, subject to SEC approval.

The final prospectus was handed over by Grameenphone CEO Oddver Hesjedal to SEC Chairman Faruq Ahmad Siddiqi, said the statement.

"We are proud of our achievement in having reached this milestone. We remain committed to contributing to the development of the capital markets of Bangladesh and look forward to a successful completion of the largest IPO in the country" the statement quoted Hesjedal as saying.

Grameenphone Ltd. also successfully closed the marketing of a pre-IPO private placement of its shares amounting to $60 million (Tk 413 crore) to local institutional investors on Dec 4, 2008, said GP.

The pre-IPO placement offer was over-subscribed by three times due to strong support from more than 50 local institutional investors. In the pre-IPO offer, the company raised a total of $60 million at Tk 7.4 per share, which was increased from earlier size due to the strong demand, said the statement.

Oil eases by more than two dollars

AFP, SINGAPORE

Oil prices eased by more than two dollars in Asian trade yesterday after big gains on anticipation that Russia and OPEC will cut production to bolster prices, dealers said.

In afternoon trade New York's main contract, light sweet crude for January delivery, dropped 2.21 dollars to 45.77 dollars a barrel after rising 4.46 dollars, more than 10 percent, to 47.98 at the close of trading Thursday on the New York Mercantile Exchange.

The market was down by about one dollar in morning trade but fell further after the United States Senate failed to reach a deal on bailing out the auto industry.

Brent North Sea crude for January fell 2.04 dollars to 45.35 dollars after rising 4.99 dollars, or 11.77 percent, to 47.39 dollars in London on Thursday.

"I think the market may have got a bit ahead of itself," said Mark Pervan, senior commodities analyst with ANZ bank in Melbourne.

Oil prices have plunged from record highs above 147 dollars in July as energy demand slows in a weaker global economy.

The Organisation of the Petroleum Exporting Countries (OPEC), which pumps about 40 percent of world crude, has already agreed on cuts of 2.0 million barrels per day this year. It has also called on non-members to play a role in reducing output.

Russia, the world's biggest crude producer which is not a member of OPEC, is ready to join forces with the cartel to stem the plunge in crude prices and could even become part of the group, Russian President Dmitry Medvedev said Thursday.

A Russian production cut could support the oil market, Pervan said, but he added: "History tells you that the Russians tend to say a lot of things and not actually deliver."

OPEC's ability to influence prices depends on whether the market believes the group will actually limit its production. Some countries cheat at the expense of others by failing to implement cuts, thereby increasing their revenues.

The International Energy Agency (IEA) said Thursday that the 13-member OPEC had been unable to stick to its targets, with some countries -- notably Ecuador, Venezuela, Libya and Iran -- making "relatively limited" reductions to their output.

OPEC cut its production by 760,000 barrels per day to 31.3 million bpd by the end of November as demand fell, the IEA said. It noted that most of the cuts came from Gulf states.

IEA, the energy policy adviser to major industrialised countries, forecast that global oil demand would fall this year for the first time in 25 years because of a worldwide economic slowdown.

Citibank launching Direct Custody, Clearing services

Nation Business Report

Citibank, N.A., Bangladesh will formally launch its Direct Custody and Clearing (DCC) services in Bangladesh on Dec. 15.

This will enable Citibank to better support its global clients and channel more foreign portfolio investments into the emerging Bangladesh capital market, said a press release.

Faruq Ahmad Siddiqi, chairman of the Securities and Exchange Commission, will be the chief guest at the launch, to be attended by Citi's clients and stakeholders including the regional senior executives of Citigroup in Asia Pacific.

Citigroup, which already launched its investment banking wing in Bangladesh to support the country's growing capital market, has now put its global strength on the arena of capital market transaction services in this country.

Citi is now the only global bank in the country which is present at both these ends of Bangladesh capital market, the press statement said.

Citi's Direct Custody and Clearing (DCC) business will enable the global investors to enjoy the bank's seamless transaction services across the world.

IBBL opens 4th SME service centre

Nation Business Report

Islami Bank Bangladesh Limited inaugurated its fourth SME Service Center recently at Chaprashirhat, Kabirhat, Noakhali.

Prof. Abu Nasser Muhammad Abduz Zaher, Chairman, Board of Directors of the Bank inaugurated the Centre. SM Humayan Kabir Sarkar, Upazilla Nirbahi Officer of Kabirhat Upazilla, M Fakhrul Islam, Managing Director of Metro Homes Limited, AKM Kawsar Chowdhury, Officer Incharge of Kabirhat Thana and Ziaul Haque Zia, Chairman, Chaprashirhat Union Parishad attended the function as Special Guests. Presided over by Md Najibur Rahman, Executive Vice President and Head of Comilla Zone of the Bank the function was addressed among others by Mufti Sayeed Ahmad, Member of Shari' ah Council of the Bank, Shahid Ullah Majumder, Assistant Vice President of the Bank and Md Anwar Hossain, Incharge of Chaprashirhat SME Service Center.

Abu Nasser Mohammad Abduz Zaher said that SME has become a well-known system throughout the world including Bangladesh. State-owned Banks and Private Commercial Banks and Financial Institutes of the country are conducting their investment program through the system. With a view to accelerating the wheel of economy and alleviating poverty from the country Islami Bank has also decided to establish SME Service Center across the country. The inauguration of Chaprashirhat SME Service Center is the successive effort of this program.

Islami Bank has invested the highest amount in agricultural and industrial sector in order to desiminate the service of the Bank to the doorsteps of the people. We are going to establish 6 more SME Service Centers by the year 2008 he added.

Firms in emerging economies 'bribe’ for business abroad: TI

Nation Business Report

Companies based in emerging economic giants including China, India and Russia are perceived to routinely engage in bribery when doing business abroad, the Berln-based graft watchdog Transparency International says.

The 2008 Bribe Payers Index said, released on Tuesday, ranks the likelihood of firms from 22 top exporting countries to bribe abroad.

These 22 countries account for approximately 75 per cent of total foreign direct investment outflows and export goods worldwide.

Belgium and Canada shared first place in the 2008 BPI with a score of 8.8 out of a very clean 10, indicating that the firms in the countries are seen as least likely to bribe abroad. On the other hand, Russia ranked last with a score of 5.9, just below China (6.5), Mexico (6.6) and India (6.8).

The Index, last published in 2006, is based on responses of 2,742 senior business executives working in 26 countries.

The BPI also showed public works and construction companies to be the most corruption-prone when dealing with the public sector, and most likely to exert undue influence on the policies, decisions and practices of governments.

"The BPI provides evidence that a number of companies from major exporting countries still use bribery to win business abroad, despite awareness of its damaging impact on corporate reputations and ordinary communities," said TI chair Huguette Labelle.

He said the governments should redouble their efforts to enforce existing laws and regulations on foreign bribery and for companies to adopt effective anti-bribery programmes.

Bribe Payers Index once again stresses that corruption is a global problem demanding global approach," Iftekharuzzaman, executive director of Transparency International, Bangladesh, said.

He said it was disappointing that companies from developed societies continue to engage in bribery in developing countries taking advantage of weak institutions, laws and enforcement.

Bank Asia higher studies scholarship

Nation Business Report

Bank Asia has given higher studies scholarships to 17 meritorious- students of Tarail Upazila of Kishoreganj district last week. Syed Anisul Huq, President and Managing Director of the Bank, handed over the scholarship money to the students.

Md Yousof Ali, UNO, Tarail was present as special guest. A large number of people including students, teachers, journalists, businessmen and local elite attended the function.

Bank Asia gives scholarships for higher studies to the meritorious students in the rural areas, where the Bank has branches. A total of 50 (fifty) students have been selected for Bank Asia higher studies scholarships for the current year.

Dollar hits 13-year low under 90 yen

AFP, Tokyo

The dollar slumped below the key 90 yen level yesterday for the first time in 13 years after a divided Senate failed to pass a rescue plan for ailing US automakers.

The greenback see-sawed against other currencies in volatile trading after hours of late-night negotiations among US senators on the bailout for the so-called Big Three automakers collapsed late Thursday.

The dollar dropped to 88.40 at one point, the lowest level since August 1995. In late Tokyo trade it was at 89.66, compared with 91.18 yen Thursday in New York.

The euro fell to 1.3370 dollars, down from a seven-week high of 1.3405 seen in New York, while the euro sank to 119.55 yen from 122.10.

"The collapse of talks on a bailout of the Big Three triggered a long-awaited attempt to break through the psychologically important 90 yen level," said Saburo Matsumoto, chief forex strategist at Sumitomo Trust Bank.

Japanese officials fired a warning shot to currency traders, saying the yen was rising too quickly.

"The currency moves are excessive and I'm concerned about it," Naoyuki Shinohara, vice finance minister for international affairs, told reporters.

Finance Minister Shoichi Nakagawa said he was watching the currency markets with "great interest."

Japan's monetary authorities have not intervened since March 2004, allowing the yen to find its own level against the dollar.

Markets were widely expecting a plunge in November US retail sales due out later in the day, as consumption was hit by a jump in unemployment to 6.7 percent last month, the highest since 1974.

Traders were pricing in another big interest rate cut by the US Federal Reserve, anticipated when it meets next week.

There is speculation that the Fed could even slash rates by as much as 75 basis points to 0.25 percent, which would be even lower than Japan's rock- bottom official borrowing costs.

The dollar was mixed against Asian currencies, falling to 33.29 Taiwan dollars, down from 33.32 on Thursday, to 47.95 Philippine pesos from 47.96 and to 35.03 Thai baht from 35.18.

But the greenback rose to 1.4941 Singapore dollars from 1.4888, to 1,373.87 South Korean won from 1,342.80 and to 11,120 Indonesian rupiah from 11,100.

SIBL Board meeting held

The 184th meeting of the Board of Directors of Social Investment Bank Limited was held in the Board Room of the bank on December 11, 2008.

Abdul Awal Patwary, Chairman of the Board of Directors of the bank presided over the meeting. Vice-chairmen Alhajj Nasiruddin and Alhajj Md Saidur Rahman, Directors, Managing Director KM Ashaduzzaman, Additional Managing Director Abu Sadek Md Sohel, SIBL Chief Financial Officer and Board Secretary were present in the meeting.

MLCSC contributes winter clothing.

Students of Maple LeafIntemational School in association with the renowned NGO, "Youth Against Hunger", contributed around 1500 winter clothes for the cold afflicted people. The "Maple Leaf Community Service Club" (MLCSC) has worked to make this project an instant success. The project was initiated and accomplished within a very short period of time. The clothes were handed over to Mark, a representative from the NGO on December 4.