Governor says BB takes initiatives to promote SME lending

Governor says BB takes initiatives to promote SME lending

0 Comments ';  The Bangladesh Bank (BB), the country’s central bank, has have taken a number of initiatives to promote small and medium enterprises (SME) lending, says BB Governor Atiur Rahman In our country, 90% private sector enterprises are SMEs. 70 to 80% of the non-agricultural workforce in our country is working at SME sector. SMEs have a significant role in generating economic growth and job opportunities. SME sector of Bangladesh contributed up to 25% of Bangladesh's GDP last year. about 40% of gross manufacturing output, and around 25% of the total labour force in Bangladesh belongs to SME sector. They also make a significant contribution to exports. Uniquely, SMEs are also geographically widely distributed so they offer a good prospect for geographic diversification of the economy. Bangladesh Bank, along with other relevant Ministries, and financial sector have been working relentlessly for the development of SME sector. The establishment of SME & Special Program Department, a separate department in Bangladesh Bank and the service provided through this department for further development of the SME sector is an evident of our efforts. Moreover, as the Central Bank, we have taken a number of initiatives to promote SME lending. Within the SME credit policy in 2010 for guiding the commercial banks to be involved in SME financing, a number of initiatives have been taken, such as for banks’ to establish “Dedicated Desks” in branches for SMEs and “SME Service Centres”. Bangladesh Bank has fixed the targets for banks SME credit disbursements and an emphasis on providing loan to small entrepreneurs and women entrepreneurs have been communicated. Banks in Bangladesh are being supported in SME financing initiatives with refinance line from Bangladesh Bank, which has funded by Bangladesh Bank, Government of Bangladesh and development partners like IDA, ADB and JICA. Under refinance scheme, Bangladesh Bank has provided 23.97 billion taka (as of July 2012) to different banks and NBFIs at subsidized interest rate. 15% of this fund (Taka 4.00 billion) is reserved for women entrepreneurs. Bangladesh Bank and IFC undertook two key projects for SME sector development. Of these two, the SME Market Segmentation Database is first of its kind in South Asia. Under this initiative, information on SME sector will be generated and will be made available for all stakeholders of SME development. Bangladesh bank has also issued directives to commercial banks for using the cluster approach for better targeting the SME sector. It is also worthy to mention that Bangladesh Bank is currently working in a research project to find out the impact of the SME financing activities undertaken by the commercial banks in Bangladesh. We are very much committed for developing SMEs in Bangladesh. However, coordinated efforts are required to overcome SME financing challenges. Banks and NBFIs need to be motivated towards enduring engagement in SME financing. Concerned public authorities, banks, business community and civil society support groups need to engage effectively with the SMEs in understanding their needs and prospects. Banks and NBFIs would need to have a tailored and explicit strategy for SME banking in place in order to build a solid SME banking strategy to facilitate sound growth and profitability in SME banking, and  have a much better credit evaluation mechanism, product design, marketing skills, and knowledge of customer and product profitability. The further development of financial institutions in light of their SME lending practices must, undoubtedly, be paralleled with further development in human resources. This, in turn, requires plans for training and qualifying trainers to enable financial institutions to undertake their important role in serving the national economy. Thus, as the financial sector is expected to serve the growing financing needs of the SMEs, the availability of well-trained human resources would undoubtedly become one of the predicaments in successful SME banking operations. Therefore, the development and organisation of seminars such as this, and various training programmes for the two main training institutions, namely, Bangladesh Bank Training Academy and Bangladesh Institute of Bank Management, through the EU-funded INSPURED project, would be an important step in making sure that adequate trained human resources would be available, as well as an improved awareness is the special need of Bangladeshi financial sector in case of SME financing. In today’s world, market development is a much more challenging task, which requires coordinated efforts by individual business enterprises and the Government. Bangladesh needs to maximize the benefits derived from the SME sector, as this sector plays a pivotal role in promoting and sustaining the industrial as well as overall economic growth. The role of SMEs in providing productive employment and earning opportunities has emerged as an important concern among policy makers, and donor agencies. The implementation of the INSPIRED project is directly related to Bangladesh’spriority to foster SME development, and will undoubtedly support the different initiatives taken by the Bangladesh Government to encourage SME growth, which in turn will support the longer term objectives of sustained economic growth and poverty reduction. Within the above contexts, I would very much like to express my appreciation for the valuable assistance and effort of Bangladesh INSPIRED project component-3, and we are confident that through such technical assistance, we would be able to contribute towards the sustainable and high-quality training in SME banking offered by our two prominent training institutions BBTA and BIBM. We are equally pleased to see the presence of the banking sector participants to utilize such training programs. Today we have a unique opportunity to be stimulated by some strategic thinking ideas. The INSPIRED project component-3 has put together an exciting seminar designed to bring a fresh perspective on your bank’s strategic processes. I urge you to get the maximum benefit from this seminar. Our foreign banking expert, Mr. Robert Patterson, brings a wealth of ideas and experience to us here in Dhaka. In conclusion, I can only reiterate my thanks to all those who have contributed to the progress and accomplishment of the project , in particular the management and staff of BBTA and BIBM, the Ministry of Industries for their effortless supervision of the project, and the European Union for its immense support and assistance. Note:  Speech by Bangladesh Bank Governor Dr. Atiur Rahman at launching of SME banking strategy seminar held at Pan Pacific Sonargaon Hotel in Dhaka on April 28. Source :http://www.businessnews-bd.com/

Garment factories to submit architectural designs to IEB

Garment factories to submit architectural designs to IEB

Dhaka, Bangladesh (BBN)- A joint meeting on architectural design of garment factories was held at the office ofBangladesh Garment Manufacturers and Exporters Association (BGMEA) on July 4. Representatives from BGMEA, factory inspection department, ministry of commerce, RAJUK, IEB, IAB, BIP, and BUET attended the meeting, a BGMEA press statement said. A decision regarding submission of architectural designs of 2,028 garment factories to the Institute of Engineers, Bangladesh(IEB) for evaluation was taken in the meeting. IEB will inform the BGMEA if any fault is found in any design. BGMEA president Md. Atikul Islam, former president Shafiul Islam, vice-president of the organization Shahidullah Azim, former VC of BUET and noted architect Jamilur Reza Chowdhury, IEB president Shamimuzzaman Bosunia, and IEB president Mobassher Hossain, among others, were present. BBN/SSR/AD-07JUly13-1:15 pm (BST)

Bangladesh’s trade deficit narrows by 26% in eight months

Bangladesh’s trade deficit narrows by 26% in eight months

Dhaka, Bangladesh (BBN)- Bangladesh’s overall trade deficit narrowed by over 26 per cent in the first eight months of the current fiscal year (FY) 2012-13 due mainly to lower import payments, officials said. The overall trade deficit came down to US$4.70 billion in July-February period of the FY `13 from $6.38 billion in the corresponding period last fiscal, according to the central bank statistics. "The country's overall trade deficit may narrow down further in the coming months due to a falling trend in the overall imports," a senior official of the Bangladesh Bank (BB) told BBN in Dhaka. During the period, export earnings stood at $17.07 billion against the import payments of $21.78 billion, the BB data showed. The BB official also said the declining trend in import may continue until the prevailing confrontational political situationimproves.  The narrowing down of trade gap and higher growth of inward remittance have contributed to achieve healthy current account balance during the period under review, according to the BB officials.  Country's current account balance rose to $1.35 billion in the first eight months of the FY `13 from the deficit of $660 million in the same period of the previous fiscal, the BB data showed. "….the large inflow of workers' remittances in the period contributed to a current account surplus of $ 1.35 billion during July-February 2013," the central bank said in its Major Economic Indicators: Monthly Update for April 2013.  The update also said this together with strong financial account surplus resulted in a surplus of $ 3.50 billion in overall balance of payments (BoP) during July-February 2013 against a deficit of $516 million during July-February 2012.   BBN/SSR/AD-18Apr13-10:40 am (BST)

Price List Ref: BJMC/PC-PL/54 Date 01/07/2012 HESSIAN: FOB Price Per 100 Yds of Normal Hessian Cloth/bags are to be calculated at USD: 37.00 basis: Quality PXS Packing Shipment Price 40/10oz/40 Normal 11X12 2000 Yds. Jul'12 - Sep'12 35.00 40/10oz/40 Food Grade 11X12 2000 Yds. Jul'12 - Sep'12 37.00 SACKING: FOB Price per 100Yds/Bags of all Sacking Cloth and bags are to be calculated using following basis price: Quality PXS Packing Shipment Price Std. B. Twills Normal 6X8 300 Bags Jul'12 - Sep'12 100.00 Std. B. Twills Food Grade 6X8 300 Bags Jul'12 - Sep'12 102.00 CBC: FOB Prices per 100Yds of all qualities of CBC (Carpet Backing Cloth) are to be calculated using following basis price: Quality PXS Shipment Price 150/5.5oz/36 9X8 Jul'12 - Sep'12 80.00 JUTE SOIL SAVER: FOB Price per 100 Yds of following quality of Jute Soil Saver is as under: Quality PXS Shipment Price 48"- 1.22lbs/Yd. (In Bale) 6.5X4.5/10cm Jul'12 - Sep'12 27.00 48"- 1.22lbs/Yd. (In Roll) 6.5X4.5/10cm Jul'12 - Sep'12 28.00 JUTE YARN: FOB Price per M.Ton of following qualities of Jute Yarns are as under: Quality Shipment Price CB 8 Lbs/1Ply Jul'12 - Sep'12 950.00 CB 10 Lbs/1Ply Jul'12 - Sep'12 810.00 CB 11 Lbs/1Ply Jul'12 - Sep'12 790.00 CB 12 Lbs/1Ply Jul'12 - Sep'12 770.00 CB 13 Lbs/1Ply Jul'12 - Sep'12 750.00 CB 14 Lbs/1Ply Jul'12 - Sep'12 730.00 CB 16 Lbs/1Ply Jul'12 - Sep'12 690.00 Sacking 28 Lbs/1Ply Jul'12 - Sep'12 730.00 NB. Premium for each single ply USD: 20.00 to be added for all yarn items. Notes : 1. Prices given above are in US Dollars per 100 Yds/Bags FOB Bangladesh Ports. 2. Differential Chart issued by BJMC on the 3rd Oct, 1996 along with its subsequent amendments will be applicable for price differentials. 3. Domestic price may be obtained from BJMC Local Sales Desk. 4. Prices given above for jute yarns are in USD per M-ton FOB Bangladesh Ports. 5. Prices will remain unchanged until further orders. CC: PS to the Secretary, Ministry of Textiles and Jute (By Fax)        PS to the Chairman BJMC.

News and Events of BJMC

Web site Matters.

 1. Re-opening of Closed Mills:

Honorable Prime Minister re-opened the closed Peoples Jute Mills of Khulna in the name of Khalishpur Jute Mills Ltd. on 05-03-2011 and Qaumi Jute Mills Ltd. Sirajganj in the name of Jatiya Jute Mills Ltd. on 09-04-2011.

 Re-opening of these 2 Mills created employment of about 7200 workers, consumption of 3.98 lac quintal raw jute and 314.60 Crore taka Foreign Exchange earnings by producing and exporting about 38,000 M.Ton jute goods.

 Further, one closed (Daulatpur) and & two leased out but subsequently returned (M.M. & R.R.) jute mills are under consideration for re-opening which will create opportunity for new employment for about 2600 man power, 95,000 quintal jute consumption and 78.00 Crore taka foreign exchange earnings by producing and export of 9000 M.Ton jute goods.

 2. Establishment of New Mills:

A proposal for establishment of a 50 loom specialized jute mill in the premises of 2nd unit of closed Adamjee Jute Mills in Narayanganj for producing high value diversified jute products is under active consideration of the Govt.

 Moreover, setting up of a 206 loom 2nd unit in Rajshahi Jute Mills will start very soon. Bangladesh Machine Tools Factory(BMTF), Gazipur, a concern under Ministry of Defense, Govt. of Bangladesh has been entrusted with the job.

 3. Employment Generation:

Jute sector is a labor-intensive industry. Re-opening of 2 jute mills facilitated employment opportunity for about 7,200 man powers. Further, 3,026 terminated workers were re-appointed and 1,256 officer & staffs and 3230 permanent labors and 21,700 daily basis workers were newly appointed in the running Mills and Head office of BJMC.

 4. Mandatory Packaging Act:

To ensure higher domestic consumption of raw jute and jute goods the present Govt has passed an Act for Mandatory use of jute goods in Packaging on 12th October, 2010.This will bring stability to the raw jute price, ensure market & reasonable price of raw jute to the farmers and most importantly increase the bargaining power for exports of jute goods in the world market.

 5. Human Resource Development:

BJMC has restarted the two training centre situated in Chittagong (at Gul Ahmed Jute Mills) and Jessore ( at Jessore Jute Industries). The newly appointed officers and staff of BJMC & mills are given basic management and job oriented trainings to increase the knowledge and efficiency of the new recruits. Moreover, refreshers course for serving officers and staff will also be started very soon.

 6. Indirect Employment Generation:

Every year BJMC opens more than 125 jute purchase centres through out the jute growing areas of Bangladesh. These centres besides ensuring fair price of raw jute to the farmers also creates employment for a good number of seasonal workers in the centres for carrying, handling, transportation of raw jute purchased.

 This year 137 jute purchase centres have been opened throughout the country.

7. Future Plan:

a) Establishment of jute based pulp/paper mill:

Encouraged by fair price, the farmers are producing more jute every year. This may at one point generate an unmanageable surplus of jute resulting into price collapse. To avoid such a situation and also to ensure stable market for increased domestic production of jute one option could be producing pulp/paper from jute.

 The Govt. has decided to convert the now closed North Bengal Paper Mill (NBPM) into a dry whole jute plant based pulp/paper producing mill. Contacts have been established with China Yunnan Corporation (CYC) in this respect. Already two delegations from CYC have visited Bangladesh and inspected the North Bengal Paper Mills during 20-26 July, 2011 and 14-19 September, 2011. They are expected to submit a proposal to Bangladesh Govt. very shortly.

Bangladesh Jute Mills Corporation

Climate bestowed Bangladesh with the opportunity to become the natural home of the best quality Jute and for this Bangladesh is the world's largest grower of quality Jute. This gives Bangladesh Jute Mills Corporation an advantage over other Jute goods manufacturer to produce and cater the needs of quality jute goods world over. Bangladesh Jute Mills Corporation, well known as BJMC is the world's biggest state owned manufacturing and exporting organization of all kinds of Jute goods. Research, innovative experimentation towards product development and modernization approaches are the other contributing elements to its unmatched success it has established over the years.

CARE, USAID Event to Highlight Dramatic Drop in Child Malnutrition in Bangladesh

WASHINGTON, D.C. (May 7, 2012) - An innovative program in Bangladesh that caused unusually large reductions in child malnutrition will come to life May 9 at an event featuring experts from the poverty-fighting organization CARE and the U.S. Agency for International Development (USAID).

They'll provide an inside look at a program called SHOUHARDO that combined nutritional support with women's empowerment initiatives to reduce child stunting, a key measure of malnutrition, by 28 percent in less than four years. That's twice the rate of the average U.S. government-funded food aid project of its kind.

The event, to be held at the National Press Club, will include remarks from Dr. Helene Gayle, president and CEO of CARE USA, Faheem Khan, head of SHOUHARDO, Denise Rollins, deputy administrator for Asia at USAID, and Anne Marie Golla, senior evaluation expert at International Center for Research on Women. The panel also will present testimonials from five Bangladeshi families who participated in the program.

Implemented by CARE from 2004 to 2010, the first phase of SHOUHARDO was the largest non-emergency USAID food security program in the world. It holds particular significance in light of the President's fiscal year 2013 request of $56.2 billion for the international affairs budget, which represents an increase of 2.4 percent – or $1.3 billion – over fiscal year 2012. As the foreign aid budget comes up for discussion this year, SHOUHARDO demonstrates how effective programs and partnerships can make a sustainable impact on the lives of women, men and children.

The program was designed to reduce malnutrition among 2 million of the poorest people in Bangladesh. Researchers found that women who participated in empowerment interventions to help them fight sexual harassment, move about their communities more freely and gain a greater say in household decisions were less likely to have stunted children than women who received only direct nutrition interventions such as regular food rations.

In other words, the children of empowered women actually grew taller.

The astounding results of the SHOUHARDO program also come as USAID leads a social media campaign called "Every Child Deserves a 5th Birthday." With almost 7 million children dying before the fifth birthdays, the campaign strives to stop these preventable deaths.

Ref: http://www.care.org