Nation this week
Exports show signs of steady recovery, overcoming disruptions caused by the political turmoil in July and August that led to the ouster of the Awami League government. According to data from the National Board of Revenue, export earnings in October surged by approximately 19 percent compared to the same month last year. Goods worth $15.88 billion were exported in the first four months of the 2024-25 fiscal, an increase of almost 11 percent year-on-year.
In October alone, Bangladesh exported goods valued at $4.13 billion-$650 million or 18.7 percent more than last year. During July, August and September, the country's export earnings stood at $3.82 billion, $4.07 billion and $3.86 billion respectively, amounting to $11.66 billion, which was 7.62 percent higher than last year. Bangladesh's export growth, which slowed from 8.79 percent in 2023 to an estimated 3.93 percent in 2024, is expected to rebound, reaching 8.83 percent by 2027.
Failing to pay for three months or 90 days after the due date will now lead to classification of loans regardless of type, according to new rules announced by the central bank, aligning with international best practices prescribed by the International Monetary Fund. The new rules will be effective from April next year, replacing current different non-performing loan (NPL) labelling tenures for different types of bank loans.
The move stoked fears of a surge in toxic loans within the banking sector, which stood at a record Tk 284,977 crore at the end of September this year. Reworking loan classification rules has been part of the IMF's prescription for Bangladesh, as part of a $4.7 billion loan programme. As per the new rules, a loan will be classified as substandard when the overdue tenure is three to six months. It will be classified as doubtful when the overdue tenure is six to 12 months. When the overdue tenure is 12 months and above, loans will be classified as bad and loss.
Bangladesh Bank injected Tk 18,500 crore into four crisis-hit banks - First Security Islami Bank, National Bank, Social Islami Bank and EXIM Bank - against demand for promissory notes. A DP note is a written instrument that promises to pay an amount of money on demand to its bearer. The central bank usually accepts a DP note when a bank does not have available bills or bonds to provide as collateral. The four ailing lenders received the funds from the central bank on November 25 for a six-month tenure at the repo rate, which stands at 10 percent.
The banking regulator took the major decision after consulting with the interim government, BB officials said. Bangladesh Bank Governor Ahsan H Mansur had said that the central bank would not provide liquidity support by printing money. Weak banks would be allowed to secure liquidity from the inter-bank money market. Over half a dozen struggling banks received Tk 6,850 crore in liquidity support from the inter-bank money market.
The High Court granted interim bail to former superintendent of police (SP) Babul Akter, in connection with the murder of his wife, Mahmuda Khanam Mitu. The bench of Justice Atowar Rahman and Justice Ali Reza issued the order with a rule after hearing Babul's bail appeal. In the rule, the court asked the respondent why he should not be granted regular bail in the case. Earlier this year, Babul had sought bail from the High Court after being denied by the lower court.
After the hearing, lawyer Shishir Monir, representing Babul, told the media that his client had not made a confessional statement in the case, even after being in custody for three years and seven months. The interim bail was granted in consideration of these factors. In June 2016, Mahmuda Khanam was hacked and shot dead in the GEC area of Chattogram while on her way to drop her son at a school bus stop.
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