Page 15 - IBT August 2021 Issue

SNIPPETS

BB urges banks to prioritise new
clients for stimulus package
Bangladesh Bank asked banks to prioritise new clients while giving
out loans from the stimulus package dedicated to the large service
and industrial units, states The Daily Star. As of June, 3,275 units
in the service and industrial sectors received loans from the
economic support package, which has tenure for three years. The BB
introduced the Tk 40,000 crore package in April last year to protect
the industrial and service sectors from the business slowdown
brought on by the coronavirus pandemic.
According to The Daily Star report, the clients, who could not secure
any fund from the stimulus fund last year, will have to be given
priority from this year, according to a central bank notice.
Customers can take a maximum of 30 percent of their working
capital from the fund.The clients, who are yet to get the full amount
entitled under the package, will also get the priority. The central
bank had initially allocated Tk 30,000 crore for the package. It later
expanded the size of the fund to Tk 40,000 crore.

Fuel stocks to hit new high due to
buoyant investors
Increased participation of buoyant investors has helped the index of Dhaka
Stock Exchange (DSE) reach a new high, reports The Daily Star. The DSEX,
the benchmark index of the DSE, edged up 8.06 points, or 0.12 per cent, to
6,425.25 -- the highest ever points level since its inception in 2013.
Earlier on July 25, the index touched 6,424 points which was also a record
at that time. Investors hope the index will continue to rise as money flow
in the banking sector may flood the stock market. Their expectation to see
it continuously rising is not illogical as banks' funds have already started
coming to the market, mentions The Daily Star report. The banking sector
had a huge excess liquidity of Tk 231,462 crore as of June, up 66 percent
year-on-year and 9 percent from a month ago, according to Bangladesh
Bank data.

From assembler to
manufacturers
The value-added tax exemption for producing air
conditioners, refrigerators and freezers locally has
created interest among home appliance
manufacturers in Bangladesh as firms are
increasingly setting up full-fledged facilities, cutting
their reliance on assembling, states The Daily Star.
For the last decade, the National Board of Revenue
has been encouraging the manufacturing of the
major home appliances by withdrawing the indirect
tax on raw materials import and production.
Initially, only a few came forward to avail
themselves of the benefit. The revenue authority
began to register increased applications from local
electronics sellers in 2017 as they look to stay
competitive since a 15 per cent VAT waiver provides
a considerable advantage in terms of pricing. Now
10 local companies are making refrigerators,
freezers and ACs.

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