Inside Economy

Surprising remittance flow in September too

Publish: 02:25 PM, 19 Sep, 2022


Remittance inflow giving hope to the strained economy. In continuation of the last two months, this month's remittance flow is also surprising. In the first 15 days of this month, expatriate income or remittances have reached 1008.67 million dollars. If the current trend continues, the amount of expatriate income will exceed 200 million dollars at the end of the month.
This figure was found in a report of the Statistics Department of the Central Bank.

In the first 15 days of September, remittances through five state-owned commercial banks reached 140.5 million US dollars. Remittances through private banks reached 848.3 million US dollars. 3.4 million US dollars came through foreign banks and 16.4 million US dollars came through a specialized bank.

In recent times the largest number of remittances came through Islamic bank. Expatriates sent 220 million dollars through this bank. After that, 99.7 million dollars came through City Bank, 73 million dollars through Al-Arafah Islami Bank, 62.3 million dollars through Agrani Bank and 52.1 million dollars through Dutch-Bangla Bank and 55.8 million dollars came through Pubali Bank.
Meanwhile, the benefits of various concessions and discounts to increase the flow of remittances are already being seen. Expatriates have sent remittances of more than 2 billion dollars in legal channels for two consecutive months of the current financial year. Remittances of 203 crore 78 lakh (2.03 billion) dollars have arrived in the last month (August). In the month of July remittance of 209 crore 63 lakhs came to the country. A large amount of expatriate income came to the country due to Eid-ul-Azha in July.


Inside Economy

Export Development Fund loans can be repaid in instalments from now on

Publish: 03:06 PM, 15 Sep, 2022


Bangladesh Bank has introduced an instalment facility to repay loans from the Export Development Fund (EDF).

From now on, the entire loan liability can be paid in three instalments, which had to be paid at once earlier.

The Foreign Exchange Policy Department (FEPD) of Bangladesh Bank issued a guideline in this regard today (September 15, 2022) and sent it to all authorized dealers engaged in foreign exchange transactions.

According to the Bangladesh Bank directive, exporters can partially repay the EDF loan liability. A maximum of two partial repayments can be made during the loan tenure.

The circular stated that the remaining liability is to be repaid in one go during the loan tenure. That means exporters can pay the entire debt in three instalments.

Sector insiders say that exporters had to face issues with the repayment at once, as export income is not available at the same time.

In such a situation, the exporters will be able to partially pay the EDF liability in instalments only after receiving the export proceeds under the new directive.

The central bank provides foreign currency support to exporters for the import of manufacturing raw materials, under EDF. The tenure of an EDF loan is 180 days. Subject to the approval of Bangladesh Bank, this period can be extended by another 90 days.



Inside Economy

Default bank loans surge to record 1.25 trillion

Publish: 05:08 PM, 09 Sep, 2022


The amount of defaulted bank loans in the country increased by about 9.0 per cent to a record Tk 1.25 trillion amid the adverse impact of the Covid-19 pandemic until June this year.

According to the Bangladesh Bank’s June quarter report, banks' loan disbursement stood at Tk 13.98 trillion till June 2022, of which 8.96 per cent or Tk 1.25 trillion turned into bad loans, reports UNB.

Despite the loan moratorium and reducing the number of annual instalments, the volume of defaulted loans has reached a record high in the country so far, said the report.

Three months ago, in the March quarter of 2022, the defaulted loans totalled Tk 1.13 trillion, according to the report.

Accordingly, in the second quarter of the year (April-June), the amount of loans that remained unpaid in time in the banking sector increased by Tk 0.11 trillion.

In the first quarter (January-March) there was an increase of defaulted repayment by Tk 0.10 trillion to Tk 1.13 trillion.

Noted economist, Dr. A B Mirza Azizul Islam said, “If you want to reduce defaulted loans, you have to increase debt collection. At the same time, bulk moratorium and reduced number instalment facility should be stopped for the borrowers.”

He explained why. “Because, having been able to get concessions for several years, the defaulters now think that if I don't repay the loan, I will get more concessions in the future. So, the facility of the defaulters should be stopped.”

Former Bangladesh Bank governor Dr. Salehuddin Ahmed echoed Island.

He said that the loan collection should be focused on the legal procedure as the banks lend money to small depositors. Without legal action, the depositors' benefit would not be secured.

In reply to a query about the capital shortfall of different banks, he said that the more defaulted loans increase, the more security provision should be kept at the central bank.

Banks have run into capital shortages while keeping this extra money out, he said.

The central bank’s latest report found that the capital deficit of seven state-owned banks, including two of the specialized banks, was Tk 0.26 trillion at the end of June.

Out of this, Bangladesh Krishi Bank has the highest deficit of Tk 0.13 trillion. The second highest deficit of Tk 25.07 billion at the Agrani Bank, Tk 22.78 billion in Sonali Bank, Tk 22.61 billion in Rupali Bank, Tk 21.24 billion in Basic Bank, Tk 16.03 billion in Janata Bank, and Tk 21.49 billion in Rajshahi Agricultural Development Bank.

The capital shortfall of five private sector banks is Tk 34.37 billion. Among them, the deficit of the ICB Islamic Bank is Tk 16.59 billion, Tk 12.12 billion at Bangladesh Commerce Bank, Tk 3.0 billion at National Bank, Tk 2.63 billion at Padma Bank, and Tk 230 million at Bengal Commercial Bank. 

At the end of June 2022, the total capital deficit of 12 banks stood at Tk 0.29 trillion in the banking system, said the report.

Economy   Bangladesh   Bank Loan   Central Bank   BB  


Inside Economy

75 thousand crore remittances lost through Hundi

Publish: 01:53 PM, 08 Sep, 2022


Bangladesh has lost remittances equivalent to Tk 75,000 crore in last one year due to billion-dollar digital hundi transactions using Mobile Financial Services (MFS). The Criminal Investigation Department (CID) of the police arrested 16 people involved in the hundi business.

CID chief Mohammad Ali Mia held a press conference in this regard on Thursday (September 8).

He said that during the interrogation of the 16 people who have been arrested, it has been reported that Tk 20.7 crore has been smuggled in the last 4 months. The CID has also traced more than 5,000 agents doing hundi through MFS. At the initial stage, we have come to know that 5000 agents are involved with Hundi through MFS using Bkash, Nagad, Rocket. These 5,000 agents have smuggled 25,000 crores in the last 4 months and 75,000 crores annually.

Out of the 16 arrested are 6 BKash agents, 3 BKash distributor sales officers, 3 BKash DSS, 2 Hundi agents, one Hundi agent's associate and one Hundi manager.

Digital Hundi   Remittance   Bangladesh  


Inside Economy

IMF loan guaranteed, inflation to fall in October

Publish: 01:48 PM, 06 Sep, 2022


Planning Minister MA Mannan said that inflation will decrease from next October. He said, it is certain that we will get the loan from the IMF, besides we will also have Aman Rice. The positive effect of these will reduce inflation from October. Moreover, he also expressed hope that everything else will start getting right.

The minister said this at the Development Journalists Forum of Bangladesh (DJFB) development dialogue at the city's NEC conference room on Tuesday (September 6).

The minister said that since the development in the country has been high in the last 10 years, the cost has also been high, many things have not been taken into account. Although the economy of the country is in some trouble due to Coronavirus and conflict of the foreign countries, there is a possibility of stability by next October. He expressed optimism that although the price inflation will increase in August and September, it will come down in October.

Claiming that everything will be normal in October, MA Mannan said, 2 million metric tons of food is stored, we will have Aman Rice soon. We will get a loan of 4.5 billion dollars from the IMF. Overall it will decrease from October. However, inflation will increase slightly in August and September. August data is available. But the head of government is out of the country. After showing it to her, I will reveal the inflation for the month of August.

IMF loan   Bangladesh   Inflation   Economy  


Inside Economy

“Bangladesh, Vietnam to work together to achieve higher economic growth”

Publish: 04:50 PM, 03 Sep, 2022


Vietnamese Ambassador to Bangladesh Pham Viet Chien has pledged that his country will continue to work together with Bangladesh to achieve higher economic growth in line with the development goals of the two countries.

“I strongly believe Viet Nam and Bangladesh will maintain a higher economic growth and keep moving towards realizing the targets to be upper middle-income countries in 2030 and then developed high-income countries in the early 2040,” he said.

The ambassador, while speaking at the 77th Vietnamese National Day reception at a city hotel on Friday night, said the two countries will continue to cooperate in living up to the dreams of the Fathers of Nations - Bangabandhu Sheikh Mujibur Rahman and Vietnamese President Ho Chi Minh.

He mentioned that as same as the 2030 and 2041 visions of the government of Bangladesh, the National Congress of the Communist Party of Viet Nam set the national development goals for 2030 and 2045.

The envoy said Viet Nam has been and will always be a friend, reliable partner and a responsible member of the international community.

“The government of Viet Nam hopes to join hands with Bangladesh and other countries to address traditional and non-traditional security challenges, to work towards a peaceful world of more sustained, inclusive and humanistic development,” he said.

Agriculture Minister Dr Muhammad Abdur Razzaque spoke as the chief guest at the reception attended by politicians, diplomats, business leaders and cultural activists.

Razzaque laid emphasis on enhancing trade and investment relations between the two countries and sought market access of diversified products to Viet Nam from Bangladesh. 

He also sought Viet Nam’s cooperation in resolving the Rohingya crisis, noting that not a single Myanmar’s national had been repatriated though Bangladesh is taking the burden of 1.2 million Rohingyas.  

The ambassador said the size and growth rate of the economy are soaring. “From a poor, least developed country, Viet Nam has become a middle-income developing nation, with a population of nearly 100 million, enjoying per-capita income over US$3,500.”

He said the government and people of Viet Nam always keep in their hearts and treasure the invaluable companionship and fruitful cooperation that the government and people of Bangladesh, all foreign countries, international organizations and international community have extended to Viet Nam, during their struggle for independence in the past, as well as in our present cause of national defense and development.

Exactly 77 years ago, on 2nd September 1945, at the grand assembly at the historic Ba Dinh Square, President Ho Chi Minh, Viet Nam’s national hero and the world’s cultural sage, read the Declaration of Independence, proclaiming to all over the nation and the world the birth of the Democratic Republic of Viet Nam - the Socialist Republic of Viet Nam today.


Bangladesh   Vietnam   Economic growth