Dhaka, Bangladesh (BBN) - Coca-Cola has submitted its second investment proposal to the government expressing its intention to set up two companies - one for production and another for distribution in Bangladesh.

"We have received the proposal and scrutinized it," Economic Adviser to the Prime Minister Dr Mashiur Rahman was quoted by the Financial Express (FE), a local newspaper, as saying. "We are positive about the investment proposal and it is likely that the issue will be settled by this year," he added. 

Dr Rahman is the head of the three-member committee that is examining the investment proposal of the multinational company (MNC), which markets three popular brands -- Coke, Sprite and Fanta.

Coca-Cola in September last year submitted its first proposal to invest $51 million to expand its business in the country.

The company in its latest proposal expressed its intention to set up a modern production plant.

The proposal said that the company wants to "set up an indirect wholly owned local subsidiary that will establish a new state of the art beverage manufacturing facility in Bangladesh."

The company will take at least three years to complete the processes and the entire equity capital of this subsidiary will be funded by its foreign source, it added.

Coca-Cola started business in Bangladesh with an agreement with Tabani, owned by a Pakistani national, in 1965.

After the liberation, Tabani was put under the Freedom Fighters' Welfare Trust and it continued its business up to 2008.

 

BBN/SI/AD-04Sept10-11:28 am (BST)  

Dhaka, Bangladesh (BBN)- The National Board of Revenue (NBR) has decided to keep all of its customs stations including Chittagong Customs House open during the week-end holidays (September 3-4) and government holiday (September 7) to facilitate export-import activities of the country's readymade garment sector. 

The NBR has already issued a directive to the officials concerned of all customs stations to this effect, an official announcement said on Thursday.

 

BBN/SI/AD-03Sept10-11:16 am (BST)  

Dhaka, Bangladesh (BBN)- The growth of private sector credit recorded a significant 24.24 per cent rise in the fiscal 2009-10 (FY10), which has also exceeded the central bank's target, officials said. 

"The higher private sector credit growth indicates restoration of confidence of investors, which suffered in fiscal 2008-09 due to the global meltdown," a senior official of the Bangladesh Bank (BB) told the Financial Express (FE), a local newspaper,  

Credit to the private sector rose by 24.24 percent to BDT 528.33 billion in July-June period of FY10 from 14.62 percent to BDT 277.91 billion of the previous fiscal, according to the central bank statistics.

He also said the recovery of world economy with high prices of essentials, including oil and wheat, in the global market has also contributed to increased flow of credit to the private sector. 

The import growth rose 7.11 per cent in FY10 against 5.26 per cent of the previous fiscal, the BB's data showed. 

The central bank of Bank had estimated the private sector credit growth at 21.1 per cent by the end of June this year, according to the monetary policy announced by the BB on July 19 this year. 

"The credit flow to private sector increased during the period mainly due to the rise in financing productive sectors like small and medium enterprises (SME), agriculture and trade," the central bank official added. 

On the other hand, a senior official of a leading private commercial bank (PCB) said capital market investment by some banks and non-banking financial institutions (NBFIs) has pushed the overall credit flow to the private sector. 

"The banks and NBFIs have invested a substantial amount in the capital market in the last quarters of FY10," the PCB official said, adding that such investment has also fueled inflationary pressure on the economy. 

The overall private sector credit growth has pushed partially the country's inflation in FY10 although the central bank as well as the government has taken different measures to curb the inflation, bankers and experts said. 

The central bank has taken a number of measures to contain inflationary pressure on the economy. 

As part of the measures, the BB raised the cash reserve requirement (CRR) by 0.5 percentage points to 5.5 per cent for the commercial banks on May 5 this year for curbing inflationary pressure on the economy. 

On August 19 this year, the central bank increased its policy interest rate by 1.0 percentage point aiming to tame inflation. 

The interest rate on repurchase agreement (repo) was re-fixed at 5.50 per cent on August 19 from 4.50 per cent while the reverse repo rate was increased to 3.50 per cent from 2.50 per cent.

The government has also taken various steps to keep the prices of commodities stable, and expects the inflation rate to remain below 6.5 per cent this fiscal year.

 

BBN/SI/AD-02Sept10-11:58 am (BST)  

Dhaka, Bangladesh (BBN)- The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged the government to keep banks open during holidays ahead of Eid to help them pay salaries to garment workers.

BGMEA President Abdus Salam Murshedy said they have already sent letters to the related ministry and the central bank of Bangladesh Bank in this regard.

Mr. Murshedy also said the trade body had decided to pay salaries of garment workers in advance so that they can share joys and happiness with family members during the festival.

He said the BGMEA has enough preparations to pay all wages, due overtimes and bonus in time as they are now working with the government.

Besides, he said, National Board of Revenue has also been requested to keep banks at customs points open to expedite export-import activities.

Leaders of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and the BGMEA formed a central committee and 10 regional committees to see whether any factory owner does not pay salaries in time, the apparel leader added. 

 

BBN/SI/AD-02Sept10-11:47 am (BST)