Trackback URL
Download PDF Banks are not disbursing loans to industrialists to set up new plants as they are facing a liquidity crisis, Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) President Annisul Huq said yesterday, differing with Finance Adviser Mirza Azizul Islam about the availability of bank loans.
“It needs a syndication of a few banks to disburse even Tk 50 crore loan,” he said.
He made the remarks at a discussion between industrialists and Finance Adviser Mirza Aziz at the Jatiya Press Club yesterday where the finance adviser said there is no liquidity crisis in the banking sector.
Annisul Huq said the banking sector may be facing liquidity crisis for two reasons–first, higher bank borrowing by the government, and second, hoarding of Tk 500 notes by households and people in the bordering areas.
Urging Bangladesh Bank authorities to investigate the matter, the FBCCI chief said, “The government could ban the notes of Tk 500 denomination to find out this.”
Denying the liquidity crisis in banking sector, Mirza Aziz, however, said the government has no plan either to investigate the matter or ban the notes Tk 500 denomination.
At present there is Tk 12,000 crore of excess money in the banking sector, he said at the post-budget discussion with industrialists.
On June 9, the finance adviser proposed the national budget for 2008-09 fiscal year with a deficit of Tk 30,580 crore of which more than Tk 13,500 crore would be borrowed from banks.
At yesterday’s discussion, Mirza Aziz advised industrialists to raise money from the stock market to set up new industrial plants with a view to reducing burden on bank borrowing.
“You can go to the overvalued and oversubscribed stock market to raise money to set up new industrial plants,” he said. “Even the public enterprises such as Jamuna Oil and Meghna Petroleum are oversubscribed and overpriced at our stock market,” he added.
“I do not think there would be any liquidity crisis for borrowing money from the banking sector to meet the budgetary deficit for 2008-09 fiscal year,” he said.
Replying to a query, he said he would inform the media when the government decides to readjust the prices of fuel oil like other countries in the world.
Admitting inadequate allocation for the science and information technology sector, Mirza Aziz said he would reconsider improving the allocation for the sector.
He also urged industrialists to invest in the export processing zones to avail the facilities given to foreign investors.
He advised leaders of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Bangladesh Textile Mills Association (BTMA) to enhance training activities to produce capable manpower since the readymade garment sector has been suffering from shortage of skilled manpower.
Economic Reporters’ Forum organised the discussion. National Board of Revenue Chairman Abdul Mazid attended the discussion, among others.
Comments are not moderated and only expresses personal views of visitors. BangladeshNews.com.bd is not responsible for commets posted by visitors.
Leave a Reply