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DSEX 5,361.11 0.29% Gold (Ounce) $1,245.00 CSCX 9,945.87 0.25% Oil (Barrel) $61.09 Daily News Flash 6th December 2018 Sell Sell Dollar 84.50 85.50 GBP 103.90 107.90 Sell Sell Euro 93.55 97.55 Rupee 1.15 1.23 Table of Contents Macro Economy ............................................................................................................ 1 DEFAULT LOANS AT ALL-TIME HIGH .............................................................................................................................. 1 REMITTANCE THROUGH MFS DOUBLES IN OCT ......................................................................................................... 2 TWO STATE JUTE MILLS TO BE MADE TEXTILE UNITS ............................................................................................ 3 LIMIT NUMBER OF OFFERS, PACKAGES TO 35 ............................................................................................................. 4 THE FINANCIAL SECTOR'S CLIMATE IMPERATIVE ................................................................................................... 4 REDUCED TAX FOR API MANUFACTURERS ................................................................................................................... 5 EXPORT EARNINGS GROW 17.24PC IN FIVE MONTHS ................................................................................................ 6 GOVT TO START PILOT PROJECT AMID FALLING FROZEN FISH EXPORTS ..................................................... 7 BTRC BARS MOBILE PACKAGES WITH LESS THAN 7-DAY VALIDITY.................................................................. 8 ৫–জির িন্য দরকার সুলভ মূল্লয তরঙ্গ ................................................................................................................................................ 8 ২০১৮-১৯ অর্থবছল্রর প্রর্ম পাাঁচ মাস: ১ হািার ৭০৭ ককা綿 ডলাল্রর পণ্য রফতাজন্ ............................................................................... 9 অববধ কসান্া ববধ করার মধয জদল্ে ন্তু ন্ �쇁 ...................................................................................................................................... 9 কবসরকাজর খাল্ত ঋণ্ প্রবৃজি সামান্য কবল্েল্ছ .................................................................................................................................... 10 Bank and NBFIs ........................................................................................................... 11 ACC FILES CASE AGAINST MERCANTILE BANK DIRECTORS ............................................................................... 11 Capital Market Specific................................................................................................ 12 LOW PERFORMERS TOP DSE GAINERS' LIST .............................................................................................................. 12 STOCKMARKET STABLE: BSEC ........................................................................................................................................ 12 ADN TELECOM SEES 13PC GROWTH IN NET PROFIT ............................................................................................... 13 DHAKA STOCKS GAIN FOR 4TH DAY RIDING ON BANKING SECTOR ................................................................. 13 FOREIGN FUND AT DSE DROPS AGAIN IN NOV ........................................................................................................... 14 করাকারল্দর শীর্থ জতল্ন্ লংকা, রযাক ইজপএল ও ইজবএল ..................................................................................................................... 15 জবল্দশীল্দর কশোর ককন্ার পজরমাণ্ কবল্েল্ছ, কল্মল্ছ জবজি ............................................................................................................... 15 শাহিালাল অযাল্সল্ে জবজন্ল্োগ করল্ব এসল্ক ট্রিমস .......................................................................................................................... 15 কসন্ট্রাল ফামথার বযাংক জহসাব িব্দ কল্রল্ছ এন্জবআর......................................................................................................................... 15 জবএসইজস পুাঁজিবািারল্ক ভাল্লাভাল্ব এজগল্ে জন্ল্ে: অর্থমন্ত্রী ............................................................................................................. 16 আজর্থক খাল্তর পাল্ল হাওো ............................................................................................................................................................ 16 Daily News Flash Thursday, December 06, 2018 Macro Economy DEFAULT LOANS AT ALL-TIME HIGH Banks' non-performing loans hit nearly Tk 1 lakh crore at the end of September -- the largest yet in Bangladesh's 48-year-history. “If the trend continues there will be dire consequences for the economy,” said Ahsan H Mansur, executive director of the Policy Research Institute. The amount of toxic loans increased 11.23 percent to Tk 99,370 crore at the end of the third quarter, compared to the previous quarter, according to data from the central bank. The amount is up 24 percent from a year earlier. The NPLs now account for 11.45 percent of the banking sector's total loans, up from 10.41 percent in June. The vast amount of default loans reflects the failure of the government to run the financial sector effectively in the last 10 years, Mansur said. “Argentina, Pakistan and Sri Lanka have been beset by economic woes in the recent past because of lack of corporate governance in their respective financial sectors. And the ongoing trend of our defaulted loans has hinted that we are going to face the same consequences.” The high non-performing loan ratio indicates that money is now being laundered abroad frequently, which has already left an adverse impact on the balance of payment (BoP), said Mansur, also a former economist of the International Monetary Fund. “Some unscrupulous persons have been laundering money in the name of import, which has already created a large deficit in the current account. The government has highly depended on the non-concessional foreign loans on the back of a waning situation of the BoP, which will sink the country into a debt trap. “Defaulted loans, money laundering and the latest crisis of the BoP are closely inter-related but the government has been overlooking the issues.” He apprehends the data on default loans provided by Bangladesh Bank does not reveal the full picture: many banks tend to conceal their NPLs to show net profit. Nearly 50 percent of the loans belong to half a dozen state-owned banks, showed the BB data. The six state-banks' total default loans stood at Tk 48,080 crore as of September, up 12.20 percent from three months earlier. In contrast, the 40 private banks' default loans stood at Tk 43,666 crore, up 12 percent from that at the end of June three months ago. No exemplary punishment had been handed down on scamsters who leveraged their close connections with government higher ups to plunder money from banks, said AB Mirza Azizul Islam, a former finance advisor to a caretaker government. “Political intervention has worsened the corporate governance in the banking sector. The government should promptly take action to restore discipline in the financial sector.” Legal complexities are one of the impediments to recovering the NPLs from habitual defaulters, said a managing director of a private bank. “We strongly wished to recover handsome amounts of money from defaulters who intend to contest in the upcoming parliamentary election. But, they filed writ petitions with the courts against their 1 Back to Table of Contents Daily News Flash Thursday, December 06, 2018 default loans to avail the non-defaulter status.” It takes 7-8 years to settle a particular case with the money loan court to realise money from a defaulter, he said. Source: https://www.thedailystar.net/business/news/default-loans-all-time-high-1669894 REMITTANCE THROUGH MFS DOUBLES IN OCT Remittance disbursement through mobile financial services (MFS) more than doubled in October compared to the previous month due to growing popularity of the alternative payment channel among expatriates. The MFS providers disbursed remittance amounting to Tk 61 crore in October, which was Tk 30.78 crore in September and only Tk 6.26 crore in October last year, according to Bangladesh Bank data. The MFS providers go into an arrangement with different banks to disburse remittance through mobile accounts to facilitate remitters, said Dasgupta Asim Kumar, an adviser of bKash, the largest MFS provider in the country. Such arrangement with the banks helped to pick up remittance inflow through the MFS channel and the uptrend will continue in the coming days, he added. The arrangements were taken as the central bank raised concerns over illegal inflow of remittance through the MFS channel, Kumar said. The MFS providers have no operation outside the country but some agents were misusing the services by channeling remittance through the mobile accounts. From this perspective, different MFS operators went into the new arrangement where banks work as a gateway to deal with foreign currency and the MFS operators act as the medium for distribution, he said. BKash is working to develop a new solution to facilitate remitters so that they can send money directly to mobile accounts at home, he added. A recent survey conducted jointly by Bangladesh Bank and the University of Dhaka showed that remittance was illegally coming in mainly from eight countries. The survey—titled “An impact study on mobile financial services (MFSs) in Bangladesh”—pointed out that Saudi