Archive by Author

Delays and delivery default risks unavoidable

image

Since beginning of the global COVID crisis Bangladesh enforced multiple local, regional and national lockdowns with various level of intensity and effectiveness. The Ready-Made-Garments (RMG) industry, backbone of the Bangladesh’s economy contributing up-to 80% of the country’s export, however, remained unaffected from lockdowns fearing worst economic consequence with social and political risks in case millions […]

Read More Comments Off on Delays and delivery default risks unavoidable

BGMEA asks Peacocks to clear payments to 29 Bangladeshi factories

image

M.T. Sweater Limited of Bangladesh made sweaters for the British discount clothing chain Peacocks. Last September, they supplied sweaters worth ca. EUR 0.5 million, which the Peacocks received only last month after a long six-month delay. Additionally, EUR 0.55 million worth of ready-made and half-made garments for this buyer are now lying in the warehouse […]

Read More Comments Off on BGMEA asks Peacocks to clear payments to 29 Bangladeshi factories

Bangladesh’s “Ease of doing business Index” Ranking dilemma!

image

The highest ranking official of the foreign investment promotion and supervision authority of Bangladesh, the Bangladesh Investment Development Authority (BIDA), does not believe that Bangladesh would achieve it’s goal improving it’s rank among the 100 best countries in the World Bank’s Ease of doing business Index this year. One of the most senior bureaucrats of […]

Read More Comments Off on Bangladesh’s “Ease of doing business Index” Ranking dilemma!

Opportunities beyond clothing in Bangladesh

Bangladesh no longer requires introduction as global sourcing hub for major clothing brands of the world. The fierce suppression of the FOB price, increasing costs for compliance to many national and international rules and regulations – often separately brand by brand – and retail market volatility leave very little room for margins for most clothing […]

Read More Comments Off on Opportunities beyond clothing in Bangladesh

Weak NBFIs in Bangladesh barred from paying dividend

eps_NBFIs_chart_176-700x399

Stocks of non-bank financial institutions (NBFI) dropped by about 1.5 per cent yesterday, a day after the central bank’s banned them from providing dividends of more than 15 per cent. With a number of non-bank financial institutions (NBFIs) suffering from severe cash crunch, the Bangladesh Bank (BB), central bank of the country yesterday barred financial institutions […]

Read More Comments Off on Weak NBFIs in Bangladesh barred from paying dividend

Japan fails to secure VAT Exemption for JICA funded project in Bangladesh

Japan government’s hard fought prestigious Matarbari Power Plant Project in Bangladesh is in a dilemma over exemption of Value Added Tax (VAT) for the construction of the Matarbari coal-fired power plant. The two year long stand-off between Japan and Bangldesh could not be resolved as both sides remains firm in their position. Japan wishes not to be discriminated and […]

Read More Comments Off on Japan fails to secure VAT Exemption for JICA funded project in Bangladesh

Bangladeshi RMG manufacturers chocking as orders fell by 30%

($1 = 0.7325 pounds; $1 = 0.8315 euros) Bangladeshi Ready-Made-Garment (RMG) manufacturers and related industries are chocking from poor cash flow mainly caused by massive discount and late payments by international retailers and brands on one hand and 30% less orders on the other due to huge stockpiles of inventory by almost all clothing retailers and brands in […]

Read More Comments Off on Bangladeshi RMG manufacturers chocking as orders fell by 30%

Non-performing loans may increase as recovery remains slow

Loans to the vulnerable sectors in Bangladesh such as garment, textile, cement and tanneries will face significant pressure as they are yet to record expected recovery from the shock of the coronavirus pandemic, Moody’s said. “The true asset quality of loans will emerge across all sectors, and we expect significant pressure in loans to vulnerable […]

Read More Comments Off on Non-performing loans may increase as recovery remains slow

Bangladesh’s $8 billion credit risk from the global retailers and brands

image

Bangladeshi Ready-Made-Garment (RMG) manufacturers are struggling to survive because of a poor cash flow caused by delays in payments by international retailers and brands despite restoration of some orders, widening the payment default risks only further as increasing number of retailers and brands are filing insolvency proceedings by self-administration or bankruptcy protection. This development is […]

Read More Comments Off on Bangladesh’s $8 billion credit risk from the global retailers and brands

300,000 loan defaulters in Bangladesh officially

There are more that 300,000 loan defaulters in various banks and financial institutions across Bangladesh, Finance Minister AHM Mustafa Kamal has said. As of October 2020, there were 334,982 loan defaulters across the country, according to the Finance Minister of Bangladesh Mr. AHM Mustafa Kamal in response to a question in the parliament on January 25th, 2021, […]

Read More Comments Off on 300,000 loan defaulters in Bangladesh officially

Another $25m IFC loan to a Bangladeshi company PRAN

pran_logo

International Finance Corporation (IFC), the private sector development arm of the World Bank Group, has provided yet another $25 million loan […]

Korean Export Processing Zone at serious risk

korean-epz-01

Instead of handing over the Korean Export Processing Zone (KEPZ) to the investor, the government of Bangladesh plans to take back […]

Dhaka needs to remove its rocky anti-FDI atmosphere

Korean Ambassador to Bangladesh Lee Yun-young

Korean Ambassador to Bangladesh Mr. Lee Yun-young has said Bangladesh should come out from protectionism and open up its market […]

‘Welfare Associations’ to negotiate for rights at Bangladesh EPZ

The Government of Bangladesh today approved, in principle, draft of a labour law for Export Processing Zones (EPZ) with the provision […]

Return of GSP seems far off – a lot more must be done

Bangladesh’s progress in implementation of the National Tripartite Plan of Action on Fire Safety and Structural Integrity (the Action Plan) which provides a […]

Bangladesh halts shutdown of “unsafe” factories

The Bangladeshi government is refusing to shut down garment factories declared unsafe, following a row with independent inspectors over the […]