Skip to main content

Foreign loans to private corporate groups dropped in 2013

Private corporate groups of Bangladesh received less foreign loans in 2013 compared to the year before. The volume of foreign loans declined due to political unrest and frequent workers’ protest throughout the year. It is an indication that foreign loans providers have lost a share of interest in giving loans to Bangladeshi corporate groups due to the lack of investment friendly environment in the country. To add to the farce, Import orders on capital machinery came to almost a halt. 

The Board of Investment expected at the start of 2013 that the flow would increase. In reality, it did not. Board of Investment approved foreign credit worth $1.19 billion in 2013 compared to $1.50 billion in 2012. Fear factor is that it might continue the falling trend in 2014 as most international loans providing organizations adopted a wait and see policy.

Volatile political environment is a serious no-go factor for any foreign loan providers. The second in line in the no-go list is workers’ unrest. Both these factors were eating out the Bangladeshi economy throughout the year.

Flow of foreign loans dropped in almost every sector including pharmaceuticals, telecommunication, power, textile, cement and steel. It is no surprise that present business environment is not at all investment-friendly. Most of the business activities including export and new investment initiatives suffered in the past 12 months. Even the top corporate groups including Ha-Meem Group, Newage Group, ACI, Paradise group are struggling in ensuring loans from international providers.

The government set a 7.2% growth target for 2013-14 fiscal year. This is likely to fail considering the political situation is yet to improve.



Comments

  1. If you had financial problems, then it is time for you to smile. You only need to contact Mr. Benjamin  with the amount you wish to borrow and the payment period that suits you and you will have your loan in less than 48 hours. I just benefited for the sixth time a loan of 700 thousand dollars for a period of 180 months with the possibility of paying before the expiration date. Make contact with him and you will see that he is a very honest man with a good heart.His email is lfdsloans@lemeridianfds.com and his WhatApp phone number is + 1-989-394-3740 

    ReplyDelete

Post a Comment

Popular posts from this blog

After Beximco Group, Square Group and Pran Group, PHP Family is coming up

Along with Beximco Group, Square Group, Pran Group, PHP Family is contributing immensely to the economic progress of Bangladesh. Beximco Group and Square Group are the top private sector players but companies like PHP Family are coming up. Sufi Mohammed Mizanur Rahman, an ex banker, established PHP Group which was later re-named as PHS Family. PHP Float Glass is a concern of PHP group and is the pioneer of glass industries in the country. Now PHP float glass industry is the largest glass producer. Ample success in Glass sector along with other indusial sector, PHP group is contributing much to the development of the country. PHP float glass industry limited is Chittagong based sister concern of PHP group. Built on 30-acres of land, with a total investment of Tk 300 crore, the PHP Float Glass Industry at Barabkunda of Sitakunda in Chittagong launched its commercial production in 2005.It produces various types of glass according to local demands. It produces clear-glass sheet of 2MM

About Nasir Group

Nasir Group is one of the largest industrial conglomerates in Bangladesh. The industries include industrial glass, tobacco, printing and packages, light engineering, melamine. It is one of the leading industries in glass manufacturing sector of the country. The company started its journey in 1977. Now this group expands in every industrial sectors of Bangladesh like tobacco, melamine, printing and packaging and footwear. Recently it started producing energy saving light bulbs. Nasir group has a great role in socio-economic development of the country. Dominance in Glass Sector Glass is one of the products of Nasir Group of Industry. Nasir group has a vital role to make Bangladesh self-sufficient in glass sector. This company provides a large portion of glasses to meet country’s demand. Nasir group started float glass production in 2005. The company built its glass manufacturing factory in Gazipur at a cost of Tk.300 crore. Nasir Glass now holds more than 40 percent of the total mark

Bangladesh Supermarket Owners’ Association demands a uniform VAT rate

Bangladesh Supermarket Owners’ Association, otherwise known as BSOA requested NBR for implementing a uniform VAT rate for all retail super shops of the country. This request is made so that they can continue the business in full pace. The government applies a 4% VAT on sales of various supermarkets including Agora, Shwapno and Meena Bazar while authorities imposed a package VAT system to general shops according to their sizes and locations. Bangladesh Supermarket Owners’ Association prefers paying VAT on per square feet rate. Customers do not like to pay 4% VAT on sales because general shops pay a flat VAT rate. The BSOA demanded the government either withdraws 4% VAT or implement package VAT system. It says in its statement that otherwise this discrimination will gradually destroy this sector. In comparison with similar markets, in Indonesia, there are 14000 stores of only two chain supermarkets and 3000 are in India. Even, in Sri Lanka, there are 1000 stores while Bangladesh h