Friday, December 07, 2018 BUSINESS

Skip Navigation Links
 
link
 
link
SUPPLEMENT

Visitor Login










Stimulus for jute millers

Business Report

Following repeated pleas of jute millers for rescheduling of outstanding loans the government has offered a stimulus package to debt-stricken millers to set aside their perils and take new efforts to bring discipline in their business and boost export earnings
Under the new package, banks will move the outstanding loans of a debt-ridden miller to a block account and offer a two-year grace period to repay the loans. The government has come up with the package following repeated appeals from Bangladesh Jute Mills Corporation, Bangladesh Jute Mills Association, and Bangladesh Jute Spinners Association, the central banker said.
Now the millers will also get a repayment period of 10 years and a lower interest rate, to be set based on the cost of fund of banks, according to a central bank notice sent to lenders on Monday. The central bank issued the circular as per an instruction of the finance ministry.
At present the ratio of defaulted loans in the jute sector stood at 19 percent of the total outstanding loans of Tk 7,961 crore as of June last year, according to data from the central bank.
The amount of default loans have significantly gone up this year but the central bank is yet to collect the latest figure of non-performing loans from lenders, said a Bangladesh Bank official.
As per the new package, the jute millers with a block account facility will become defaulters if they fail to pay back four consecutive quarterly instalments in a year.
As per traditional banking rules, clients turn into defaulters if they do not provide any instalment for six months. The package will be cancelled if a miller defaults on instalment payments.
Jute millers’ outstanding loans as of October this year can be transferred to the block account. The facility can also be extended to those who earlier enjoyed the same benefit but became defaulter because of poor business.
The central bank, however, said millers will avail the facility based on the bank-customer relationship. After transferring loans to the block accounts, the court cases filed earlier by banks against the defaulted millers will be settled on mutual understanding.
Last fiscal year, the sector brought home $1.02 billion in exports, up 6.56 percent year-on-year, according to data from the Export Promotion Bureau.

Comment

Business Report

Following repeated pleas of jute millers for rescheduling of outstanding loans the government has offered a stimulus package to debt-stricken millers to set aside their perils and take new efforts to bring discipline in their business and boost export earnings
Under the new package, banks will move the outstanding loans of a debt-ridden miller to a block account and offer a two-year grace period to repay the loans. The government has come up with the package following repeated appeals from Bangladesh Jute Mills Corporation, Bangladesh Jute Mills Association, and Bangladesh Jute Spinners Association, the central banker said.
Now the millers will also get a repayment period of 10 years and a lower interest rate, to be set based on the cost of fund of banks, according to a central bank notice sent to lenders on Monday. The central bank issued the circular as per an instruction of the finance ministry.
At present the ratio of defaulted loans in the jute sector stood at 19 percent of the total outstanding loans of Tk 7,961 crore as of June last year, according to data from the central bank.
The amount of default loans have significantly gone up this year but the central bank is yet to collect the latest figure of non-performing loans from lenders, said a Bangladesh Bank official.
As per the new package, the jute millers with a block account facility will become defaulters if they fail to pay back four consecutive quarterly instalments in a year.
As per traditional banking rules, clients turn into defaulters if they do not provide any instalment for six months. The package will be cancelled if a miller defaults on instalment payments.
Jute millers’ outstanding loans as of October this year can be transferred to the block account. The facility can also be extended to those who earlier enjoyed the same benefit but became defaulter because of poor business.
The central bank, however, said millers will avail the facility based on the bank-customer relationship. After transferring loans to the block accounts, the court cases filed earlier by banks against the defaulted millers will be settled on mutual understanding.
Last fiscal year, the sector brought home $1.02 billion in exports, up 6.56 percent year-on-year, according to data from the Export Promotion Bureau.


Login to post comments


(0)



Unilever to buy GSK’s 82pc shares in Bangladesh

Business Report

GSK Bangladesh facing closure get a new lease of life as Unilever is set to buy 82 percent stakes in the company’s health food and drinks business in Bangladesh for Tk 1,640 crore, as part of the Anglo-Dutch company’s push to cash in on Asia’s fast-growing economies.
It has also offered to buy GSK’s entire health food and drinks portfolio in India as well as in 20 other Asian countries for 3.3 billion euros (about $3.74 billion), after it fought off competition from rivals Nestle and Coca-Cola, market report said.
The remaining stakes of GSK Bangladesh, which is listed on Dhaka Stock Exchange, are held by institutions foreigners and local individuals.
GSK’s shares yesterday jumped about 4 percent to Tk 1,378, up from Tk 1,084 a share a week earlier. As per yesterday’s price, the company’s market value stood at Tk 1,594.50 crore, which is Tk 45.50 crore less than the price offered by Unilever.
India is the most important market for GSK, accounting for more than 90 percent of its sales.
The merger values GSK India at Rs 31,700 crore in total, or Rs 7,540 per share, a 15.4 percent premium to the undisturbed share price of Rs 6,531 as at the close of business on March 26.
Unilever would be getting its hands on popular malted drinks Boost and Horlicks, which had 45 percent of India’s health drink market in 2017.
“Horlicks has made a significant contribution to GSK and to the health of consumers across India for many decades and we believe Unilever is well placed to maximise its future potential,” said Emma Walmsley, chief executive officer of GSK.
The proceeds from the transaction will be used to shore up its other healthcare products.
Marketed in Asia as a nutritious boost to children’s diets, the Horlicks product line fit the bill for global consumer goods companies hunting for assets to satisfy demand for healthy and convenient foods.
The deal, which is expected to be complete by the end of 2019, also marks a rare chance to acquire a fast-growing product in an emerging market where consumers’ diets are changing as income per head grows.
GSK said its net proceeds from the deal, after tax and hedging costs, were expected to be around 2.4 billion pounds ($3.1 billion).
The decision to sell the business comes to support GSK’s $13 billion buyout of Novartis’ stake in their consumer healthcare joint venture earlier this year. The buyout gave GSK full control of products, including Sensodyne toothpaste, Panadol headache tablets, muscle gel Voltaren and Nicotinell patches.

Comment

Business Report

GSK Bangladesh facing closure get a new lease of life as Unilever is set to buy 82 percent stakes in the company’s health food and drinks business in Bangladesh for Tk 1,640 crore, as part of the Anglo-Dutch company’s push to cash in on Asia’s fast-growing economies.
It has also offered to buy GSK’s entire health food and drinks portfolio in India as well as in 20 other Asian countries for 3.3 billion euros (about $3.74 billion), after it fought off competition from rivals Nestle and Coca-Cola, market report said.
The remaining stakes of GSK Bangladesh, which is listed on Dhaka Stock Exchange, are held by institutions foreigners and local individuals.
GSK’s shares yesterday jumped about 4 percent to Tk 1,378, up from Tk 1,084 a share a week earlier. As per yesterday’s price, the company’s market value stood at Tk 1,594.50 crore, which is Tk 45.50 crore less than the price offered by Unilever.
India is the most important market for GSK, accounting for more than 90 percent of its sales.
The merger values GSK India at Rs 31,700 crore in total, or Rs 7,540 per share, a 15.4 percent premium to the undisturbed share price of Rs 6,531 as at the close of business on March 26.
Unilever would be getting its hands on popular malted drinks Boost and Horlicks, which had 45 percent of India’s health drink market in 2017.
“Horlicks has made a significant contribution to GSK and to the health of consumers across India for many decades and we believe Unilever is well placed to maximise its future potential,” said Emma Walmsley, chief executive officer of GSK.
The proceeds from the transaction will be used to shore up its other healthcare products.
Marketed in Asia as a nutritious boost to children’s diets, the Horlicks product line fit the bill for global consumer goods companies hunting for assets to satisfy demand for healthy and convenient foods.
The deal, which is expected to be complete by the end of 2019, also marks a rare chance to acquire a fast-growing product in an emerging market where consumers’ diets are changing as income per head grows.
GSK said its net proceeds from the deal, after tax and hedging costs, were expected to be around 2.4 billion pounds ($3.1 billion).
The decision to sell the business comes to support GSK’s $13 billion buyout of Novartis’ stake in their consumer healthcare joint venture earlier this year. The buyout gave GSK full control of products, including Sensodyne toothpaste, Panadol headache tablets, muscle gel Voltaren and Nicotinell patches.


Login to post comments


(0)



Qatar to leave Opec and focus on gas as it takes swipe at Riyadh

Reuters, Doha

Qatar said on Monday it was quitting Opec from January to focus on its gas ambitions, taking a swipe at the group’s de facto leader Saudi Arabia and marring efforts to show unity before this week’s meeting of exporters to tackle an oil price slide.
Doha, one of Opec’s smallest oil producers but the world’s biggest liquefied natural gas (LNG) exporter, is embroiled in a protracted diplomatic row with Saudi Arabia and some other Arab states.
Qatar said its decision was not driven by politics but in an apparent swipe at Riyadh, Minister of State for Energy Affairs Saad al-Kaabi said: “We are not saying we are going to get out of the oil business but it is controlled by an organization managed by a country.” He did not name the nation.
Al-Kaabi told a news conference that Doha’s decision “was communicated to Opec” but said Qatar would attend the group’s meeting on Thursday and Friday, and would abide by its commitments.
He said Doha would focus on its gas potential because it was not practical for Qatar “to put efforts and resources and time in an organization that we are a very small player in and I don’t have a say in what happens.”
Delegates at Opec, which has 15 members including Qatar, sought to play down the impact. But losing a long-standing member undermines a bid to show a united front before a meeting that is expected to back a supply cut to shore up crude prices that have lost almost 30 percent since an October peak.
 “They are not a big producer, but have played a big part in it’s (Opec) history,” one Opec source said.
It highlights the growing dominance over policy making in the oil market of Saudi Arabia, Russia and the United States, the top world’s three oil producers which together account for almost a third of global output.
Riyadh and Moscow have been increasingly deciding output policies together, under pressure from US President Donald Trump on Opec to bring down prices. Benchmark Brent is trading at around $62 a barrel, down from more than $86 in October.
“It could signal a historic turning point of the organization towards Russia, Saudi Arabia and the United States,” said Algeria’s former energy minister and Opec chairman, Chakib Khelil, commenting on Qatar’s move.
He said Doha’s exit would have a “psychological impact” because of the row with Riyadh and could prove “an example to be followed by other members in the wake of unilateral decisions of Saudi Arabia in the recent past.”
Qatar, which Al-Kaabi said had been a member of Opec for 57 years, has oil output of just 600,000 barrels per day (bpd), compared with Saudi Arabia’s 11 million bpd.
But Doha is an influential player in the global LNG market with annual production of 77 million tonnes per year, based on its huge reserves of the fuel in the Gulf.
Opec members Saudi Arabia and the United Arab Emirates, and fellow Arab states Bahrain and Egypt, have imposed a political and economic boycott on Qatar since June 2017, accusing it of supporting terrorism. Doha denies the charges and says the boycott aims to impinge on its sovereignty.

Comment

Reuters, Doha

Qatar said on Monday it was quitting Opec from January to focus on its gas ambitions, taking a swipe at the group’s de facto leader Saudi Arabia and marring efforts to show unity before this week’s meeting of exporters to tackle an oil price slide.
Doha, one of Opec’s smallest oil producers but the world’s biggest liquefied natural gas (LNG) exporter, is embroiled in a protracted diplomatic row with Saudi Arabia and some other Arab states.
Qatar said its decision was not driven by politics but in an apparent swipe at Riyadh, Minister of State for Energy Affairs Saad al-Kaabi said: “We are not saying we are going to get out of the oil business but it is controlled by an organization managed by a country.” He did not name the nation.
Al-Kaabi told a news conference that Doha’s decision “was communicated to Opec” but said Qatar would attend the group’s meeting on Thursday and Friday, and would abide by its commitments.
He said Doha would focus on its gas potential because it was not practical for Qatar “to put efforts and resources and time in an organization that we are a very small player in and I don’t have a say in what happens.”
Delegates at Opec, which has 15 members including Qatar, sought to play down the impact. But losing a long-standing member undermines a bid to show a united front before a meeting that is expected to back a supply cut to shore up crude prices that have lost almost 30 percent since an October peak.
 “They are not a big producer, but have played a big part in it’s (Opec) history,” one Opec source said.
It highlights the growing dominance over policy making in the oil market of Saudi Arabia, Russia and the United States, the top world’s three oil producers which together account for almost a third of global output.
Riyadh and Moscow have been increasingly deciding output policies together, under pressure from US President Donald Trump on Opec to bring down prices. Benchmark Brent is trading at around $62 a barrel, down from more than $86 in October.
“It could signal a historic turning point of the organization towards Russia, Saudi Arabia and the United States,” said Algeria’s former energy minister and Opec chairman, Chakib Khelil, commenting on Qatar’s move.
He said Doha’s exit would have a “psychological impact” because of the row with Riyadh and could prove “an example to be followed by other members in the wake of unilateral decisions of Saudi Arabia in the recent past.”
Qatar, which Al-Kaabi said had been a member of Opec for 57 years, has oil output of just 600,000 barrels per day (bpd), compared with Saudi Arabia’s 11 million bpd.
But Doha is an influential player in the global LNG market with annual production of 77 million tonnes per year, based on its huge reserves of the fuel in the Gulf.
Opec members Saudi Arabia and the United Arab Emirates, and fellow Arab states Bahrain and Egypt, have imposed a political and economic boycott on Qatar since June 2017, accusing it of supporting terrorism. Doha denies the charges and says the boycott aims to impinge on its sovereignty.


Login to post comments


(0)



Exports to India soars by 65pc thru’ Benapole land port

Business Report

Goods export to India through Benapole land port increased around 65 percent year-on-year to Tk 4,040.35 crore in 10 months to October this year based on upgradation of road infrastructure. Export volume also rose, by 40 percent year-on-year, to 322,000 tonnes during the period.
Benapole Customs Commissioner Belal Hossain Chowdhury has been quoted as saying the development to the media that the significant growth has taken lace due to opening of a dedicated bypass road connecting Benapole and Petrapole for faster transport of goods and introduction of digital tax processes. Raw materials imported for making goods for renowned brands are now being examined in a day at the port, he said.
The products shipped to India mainly include apparel items, leftover garments, rice powder, fish, Mahogany wood, mosquito net materials, jute, thread made from jute goods, jute bags, plastic bottles, ceramics and food items.
Export of shirts, t-shirts, jeans and trousers for different luxury brands, including Zara, FHM and Raymond, has also started through the port recently; earlier those were sent through air shipment.

Comment

Business Report

Goods export to India through Benapole land port increased around 65 percent year-on-year to Tk 4,040.35 crore in 10 months to October this year based on upgradation of road infrastructure. Export volume also rose, by 40 percent year-on-year, to 322,000 tonnes during the period.
Benapole Customs Commissioner Belal Hossain Chowdhury has been quoted as saying the development to the media that the significant growth has taken lace due to opening of a dedicated bypass road connecting Benapole and Petrapole for faster transport of goods and introduction of digital tax processes. Raw materials imported for making goods for renowned brands are now being examined in a day at the port, he said.
The products shipped to India mainly include apparel items, leftover garments, rice powder, fish, Mahogany wood, mosquito net materials, jute, thread made from jute goods, jute bags, plastic bottles, ceramics and food items.
Export of shirts, t-shirts, jeans and trousers for different luxury brands, including Zara, FHM and Raymond, has also started through the port recently; earlier those were sent through air shipment.


Login to post comments


(0)



Trump-Xi agree 90 days pause on high tariff preparing new negotiations

Agency Report

President Donald Trump and Chinese President Xi Jinping announced Saturday evening a 90-day pause on new tariff actions as the two countries attempt to finalize an agreement on intellectual property, technology theft, and non-tariff trade barriers agencies report said.
The White House announced the agreement in a statement following Trump and Xi’s working dinner in Argentina as part of the Group of 20 (G-20) summit held on November 20 and 21.
“President Trump and President Xi have agreed to immediately begin negotiations on structural changes with respect to forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft, services and agriculture,” the White House said in a statement.
“China will agree to purchase a not yet agreed upon, but very substantial, amount of agricultural, energy, industrial, and other product from the United States to reduce the trade imbalance between our two countries,” the statement continued, adding that “China has agreed to start purchasing agricultural product from our farmers immediately.”
If the two countries cannot reach a deal within 90 days, the White House says, existing 10 percent tariffs on $200 billion worth of Chinese goods will be increased to 25 percent.
“This was an amazing and productive meeting with unlimited possibilities for both the United States and China. It is my great honor to be working with President Xi,” Trump said in a statement released by the White House.
News of an agreement and further planned trade negotiations between Trump and China’s leader come following months of back-and-forth tariff actions by both administrations, with the U.S. accusing China of intellectual property theft from U.S. companies operating in the country as well as other unfair trade practices.
China retaliated with billions of dollars’ worth of tariffs targeting American manufacturing and agricultural exports, specifically targeting products exported by Trump-supporting red states to put pressure on the U.S. president.
Trump had previously celebrated billions of dollars “pouring into the coffers of the U.S.A. because of the Tariffs being charged to China” on a tweet on Thursday, while White House advisers had talked about hopes for a breakthrough in the trade dispute ahead of the G-20 summit.

Comment

Agency Report

President Donald Trump and Chinese President Xi Jinping announced Saturday evening a 90-day pause on new tariff actions as the two countries attempt to finalize an agreement on intellectual property, technology theft, and non-tariff trade barriers agencies report said.
The White House announced the agreement in a statement following Trump and Xi’s working dinner in Argentina as part of the Group of 20 (G-20) summit held on November 20 and 21.
“President Trump and President Xi have agreed to immediately begin negotiations on structural changes with respect to forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft, services and agriculture,” the White House said in a statement.
“China will agree to purchase a not yet agreed upon, but very substantial, amount of agricultural, energy, industrial, and other product from the United States to reduce the trade imbalance between our two countries,” the statement continued, adding that “China has agreed to start purchasing agricultural product from our farmers immediately.”
If the two countries cannot reach a deal within 90 days, the White House says, existing 10 percent tariffs on $200 billion worth of Chinese goods will be increased to 25 percent.
“This was an amazing and productive meeting with unlimited possibilities for both the United States and China. It is my great honor to be working with President Xi,” Trump said in a statement released by the White House.
News of an agreement and further planned trade negotiations between Trump and China’s leader come following months of back-and-forth tariff actions by both administrations, with the U.S. accusing China of intellectual property theft from U.S. companies operating in the country as well as other unfair trade practices.
China retaliated with billions of dollars’ worth of tariffs targeting American manufacturing and agricultural exports, specifically targeting products exported by Trump-supporting red states to put pressure on the U.S. president.
Trump had previously celebrated billions of dollars “pouring into the coffers of the U.S.A. because of the Tariffs being charged to China” on a tweet on Thursday, while White House advisers had talked about hopes for a breakthrough in the trade dispute ahead of the G-20 summit.


Login to post comments


(0)



FRONT PAGE
EDITORIAL
COMMENTS
INTERNATIONAL
BUSINESS
INFOTECH
CULTURE
MISCELLANY
AVIATOUR
FOUNDING EDITOR: ENAYETULLAH KHAN; EDITOR: SAYED KAMALUDDIN
Contents Copyrighted © by Holiday Publication Limited
Mailing address 30, Tejgaon Industrial Area, Dhaka-1208, Bangladesh.
Phone 880-2-8170462, 8170463, 8170464 Fax 880-2-9127927 Email weeklyholiday65@gmail.com
Site Managed By: Southtech Group
Southtech Group does not take any responsibility for any news content of this site