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BB eases GTF fund policy for state-owned banks

Staff Correspondent
06 Sep 2021 00:00:00 | Update: 06 Sep 2021 08:33:55
BB eases GTF fund policy for state-owned banks

The Bangladesh Bank will now allow partner state-owned banks to avail loans from the Green Transformation Fund (GTF), even if they have more than 10 per cent defaulted loans.

BB’s Foreign Exchange Policy Department announced the decision in a gazette notification on Sunday.

BB established the GTF with $200 million and €200 million from its foreign exchange reserves. The GTF would enable partner banks to fund import of raw materials and tools for eco-friendly export-oriented industries.

However, any partner bank with over 10 per cent defaulted loans was not allowed to avail the GTF facility. Any bank with a deficit in credit and investment reserves, capital and liquidity will not be eligible to act as a partner bank for the GTF.

State-owned banks’ officials said the new notification will enable existing export-oriented industries working with state-owned bank to use funds from GTF to make their factories environment friendly.

Chittagong Stock Exchange (CSE) Chairman Asif Ibrahim told The Business Post, “BSEC has taken many steps to restructure and reform the market. More multinational and state-owned companies should be listed to strengthen the capital market. Tax policy for the listed companies should be made more attractive to attract foreign brokerage houses to trade in our market.”

Investors’ positive expectations towards the capital market remained persistent, primarily backed by favourable macroeconomic outlook and continuous efforts by the BSEC, according to stock analysts.

UCB Stock Brokerage Limited in its daily market review said among major sectors, Tannery, Jute, and Paper & Printing sectors experienced price appreciation while General Insurance, Life Insurance and Mutual Fund faced correction.

The engineering sector dominated the turnover chart covering 11.19 per cent of total turnover, it said.

Beximco Limited topped the turnover list followed by LafargeHolcim, Beximco Pharma, LankaBangla Finance and Doreen Power.

ADN Telecom was the top gainer, posting 10 per cent rise while SEML FBLSL Growth Fund was the worst loser, losing 9.83 per cent.

The port city bourse, Chittagong Stock Exchange (CSE), also ended in green terrain.

The selected indices (CSCX) and All Share Price Index (CASPI) advanced by 141.2 points and 234.9 points respectively.

The turnover value was Tk 95 crore in the CSE. Out of the 327 issues traded, 198 advanced, 100 declined and 29 remained unchanged on the bourses.