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Daily News Recap
Tuesday, May 4, 2015
Bangladesh: still the first choice for apparel sourcing after China
Bangladesh is still the first choice for apparel sourcing after China, but other countries are fast
catching up, McKinsey & Company, a global management consulting firm, said in its latest report.
We have an added advantage now as the Accord and Alliance [the two foreign building inspection
agencies] have certified more than 98 percent of our factories to be safe after the inspection,”
said Atiqul Islam.
http://www.thedailystar.net/business/bangladesh-still-the-first-choice-apparel-sourcing-afterchina-80350
Banks make good cash recovery against bad loans
Local banks last year made BDT 103630.00 million of cash recovery from the classified loans,
which provided them a spot of respite from their runaway default loans. Of the amount, the private
commercial banks made the highest recovery of BDT 63,810 million, followed by state-owned
commercial banks at BDT 21,260 million, according to Bangladesh Bank statistics. The
specialized banks recovered BDT 17,050 million and the foreign commercial banks BDT 1,510
million.
http://www.thedailystar.net/business/banking/banks-make-good-cash-recovery-against-badloans-80347
PCBs are doing better than state-run banks: Moody's
Bangladesh government needs around BDT 135.00 billion for recapitalization of the state-run
banks because of their weak financial health, the Moody's has said. The government in the first
phase injected BDT 41.00 billion into the four state-owned commercial banks (SoCBs) in the fiscal
year (FY) 2013-14. In the second phase, three state-run specialized banks and a financial
institution were given a total of BDT 3.09 billion to meet their capital needs.
http://www.thefinancialexpress-bd.com/2015/05/04/91290
Submarine Cable plans to sell bandwidth to Italian firm at low price
Questions have been raised over a move by Bangladesh Submarine Cable Company Ltd
(BSCCL) to sell off half of its capacity to an Italian company at a very low price. BSCCL has sent
a proposal to the post and telecommunication division for approval to sell half the capacity of the
SEA-ME-WE-4 cable to Telecom Italia Sparkels.
In February, the BSCCL board decided to sell four million MIU*km (minimum investment unit),
which is equivalent to around 90 Gbps, at a price of Tk 16 crore for the rest of the lifetime of the
cable. A submarine cable usually lasts 20-25 years, and this cable has been in operation since
2006; so, the Italian company may be looking to use the cable for 11 to 16 more years.
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Capital Market Research Department
Daily News Recap
Tuesday, May 4, 2015
In addition, Italia Sparkels will pay BSCCL Tk 48 lakh a year to bear maintenance costs, as
Bangladesh is still a member of the consortium -- SEA-ME-WE-4. At present, BSCCL has a total
capacity of 8.9 million MIU*km, which is equivalent to 200 Gbps. The cabinet recently approved
the deal with India that is expected to be signed this month. The rent will be $100,000 for 10 Gbps
a month.
http://www.thedailystar.net/business/submarine-cable-plans-sell-bandwidth-italian-firm-lowprice-80342
Extension of MoU for LNG import from Qatar sought
The government has sought extension of memorandum of understanding (MoU) with Qatar by
two more years to import liquefied natural gas (LNG) until it builds a receiving terminal, said
officials.
Bangladesh on January 16, 2011 had signed a MoU to import annually 4.0 million tonnes of LNG
from the Qatar Petroleum for use in the gas-guzzling industries including fertiliser factories and
power plants. The government is currently working to build two separate LNG terminals on
Moheshkhali island in the Bay of Bengal -- of which one will be land-based and another would be
offshore with the capacity of 3.5 mn ton and 5 mn ton per year.
http://www.thefinancialexpress-bd.com/2015/05/04/91299
Number of new BO accounts on rise
The number of new beneficiary owner (BO) accounts are on the rising trend in recent months
though the secondary market is going through a torrid time. Some 87,782 new BO accounts were
opened in the first four months in 2015, as investors were more confident in pouring funds into
the primary market rather than the secondary one.
The total number of active BO accounts reached at 32,23834 on April 30, which was 31,36052
on January 1, 2015, according to the Central Depository Bangladesh Ltd (CDBL), which
preserves electronic data of all individual and institutional investors.
http://www.thefinancialexpress-bd.com/2015/05/04/91279
Import payment growth dips in Jul-Mar amid dull business
The country’s import payment growth slackened to 5.17 per cent in the first nine months of the
current financial year 2014-15 in contrast to a 14.12-per cent growth in the same period of the
FY14 amid dull business caused by frequent political turbulences during the period. According to
the Bangladesh Bank data released on Thursday, the settlement of letters of credit, or generally
known as actual import, in the July-March period of the FY15 stood at $28.78 billion against
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Capital Market Research Department
Daily News Recap
Tuesday, May 4, 2015
$27.37 billion during the same period of the FY14. The import had stood at $ 23.98 billion in the
nine months of the FY13.
A BB official told New Age on Thursday that the country had maintained a robust growth in the
import financing in the last two financial years but it nosedived this financial year due to political
unrest and uncertainty.
http://newagebd.net/116687/import-payment-growth-dips-in-jul-mar-amid-dullbusiness/#sthash.jEnrp4Nb.dpuf
Bangladesh’s position getting better in int’l labour market
Industries Minister Amir Hossain Amu has said the expansion of technical and vocational
education and training for the youth has consolidated the position of Bangladeshis in the Middle
East, Malaysia and European labour markets, reports UNB. The minister said this while speaking
at the closing ceremony of the three-day international conference on ‘Technical and Vocational
Education and Training (TVET) for Sustainable Development’ at Radisson Blu Water Garden
Hotel on Saturday night. Amu said the government is considering the country’s huge manpower
a strong element of the national economy as it ‘creates industries, entrepreneurs, workers and
domestic market’.
http://www.theindependentbd.com/index.php?option=com_content&view=article&id=256873:ba
ngladeshs-position-getting-better-in-intl-labour-market&catid=110:business-others&Itemid=156
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Capital Market Research Department
Daily News Recap
Tuesday, May 4, 2015
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Underweight
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