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Credit card users are likely to pay more interest than planned as new guidelines of the Bangladesh Bank go into effect from next year. In line with the previous guidelines, the interest rate on credit cards cannot be more than 5 percentage points from the rates on consumer loans given by a bank. In a new circular on Thursday, the central bank altered the guidelines saying the rate cannot be more than 5 percentage points from the highest interest rate on any loan offered by the bank.  Here is an illustrative example: if the City Bank sets 19 per cent as the benchmark, it means the new rate on credit cards will be 24 per cent in line with the new guidelines. According to the previous guidelines, it would be 16 per cent as the City Bank’s interest rate on consumer credit is 11 per cent. Currently, the City Bank charges a 34.5 per cent interest rate on credit cards, highest among all banks, according to data from Bangladesh Bank. The latest decision has its upside: the new rate will be lower than the existing rate. As the reason for the changed decision, the central bank cited problems to be faced by the banks in execution and technology, according to bdnews24.com. The Bangladesh Bank set the ceiling two months ago, saying those would be effective immediately. Following pressure from the banks, now the central bank has also extended the time for implementation of the guidelines. City Bank, BRAC Bank, Eastern Bank and Standard Chartered Bank objected to the rate in a meeting with Bangladesh Bank on June 20. Now, the central bank appears to have bowed to their demand. Amid huge numbers of complaints over high interest rates on credit cards, Bangladesh Bank published the guidelines on credit card operations in May, setting the ceiling for the interest rate. There are allegations that the banks were levying high interest rates on credit cards in the absence of central bank guidelines. Customers prefer credit cards to loans because it is easier to draw money or purchase products. Interest is charged on the unpaid balance after the payment is due. The banks also calculate interest on the entire credit taken through the card, not on the amount left after paying instalments. The guidelines say the banks will have to take out the amount paid in instalments while calculating interest.   ....

Published at: 2017-08-04 00:00:05

A housewife was stabbed to death allegedly by her siblings over a land dispute at Gopalpur village in Damurhuda upazila of Chuadanga on Thursday. Husne Ara Chhabi, 42, wife of one Hafizul Islam of Kushita and daughter of Manna Malitha had been at loggerheads with her two brothers and a sister - Matin, Shaheen, and Mini -- over a 5-decimal land, said Abu Jihad, officer-in-charge of Damurhuda Police Station. On Thursday, an altercation broke out among the four siblings over the possession of the land at the father's house when Chhabi had been there and claimed her share, reports UNB. At one stage, Matin, Shaheen, and Mini hit Chhabi with a sharp weapon, leaving her critically injured. She died on the way while being moved to Rajshahi Medical College Hospital, said the OC. So far, there has been no arrest in this connection.....

Published at: 2017-08-04 00:00:05

Tea prices witnessed a further fall this week as loose tea buyers operated in lesser strength, says a press release. Blenders, however, continued to be quite active but were holding lower limits than last while dusts sold well. CTC Leaf: Some 39,548 packages and 180 packages of old season teas on offer met with a fairly good demand with prices declining further. Brokens: Bright liquoring BOPs were well sought after and sold well but were generally easier by up to Tk 5. Small brokens met with a fair demand but often declined by up to Tk 7 and more. There were also several withdrawals. Plainer varieties met with fair interest but prices decline by about Tk 4 to Tk 6 with quite a few withdrawals. Poorest types were often difficult of sale. Fannings: Bright fannings met with a fairly good demand although prices declined by up to Tk 5 to Tk 7 over last. Medium varieties met with slightly more interest and were about steady to easier. Plain types saw fair enquiry but generally sold at easier rates with some withdrawals. CTC Dust: Some 6,533 packages and 15 packages of old season teas on offer met with a good demand. Good liquoring dust met with better enquiry at firm to slightly dearer rates. Others also sold well at around last levels with only a few withdrawals. Blenders lent good support with fair interest from the loose tea buyers.....

Published at: 2017-08-03 00:00:04

Sri Lankan President Maithripala Sirisena told the Sri Lanka Ports Authority (SLPA) workers' unions that he would not "under any circumstances" allow the contract on Colombo port's east terminal to be given to a foreign party. According to a bdnews24.com report from Colombo, among the companies bidding for the project to complete the terminal on a build, operate and transfer basis, were two Indian firms, Shapoorji and Container Corporation of India, and Bangladesh's Summit Shipping, which had a good chance of winning the deal. In the early stages, the Sirisena-Wickremesinghe government was keen on giving the contract to a South Asian company to balance China and "the region" meaning South Asia, in the port projects. The then minister of ports, Arjuna Ranatunga, even named the Indian firms, Shapoorji Pallonji and the Container Corporation of India, as the likely recipients of the contract. In the master plan of Colombo Port Expansion Project, the east container terminal has a 1,200m long quay wall, alongside the water depth of 18m and a yard capacity of 2.4 million TEUs. In May 2015, the SLPA had completed, at a cost of $80 million, a 440m single berth as the first phase of the plan to meet the shortfall in the capacity of container handling in the port of Colombo. Chances of the expansion project going to an Indian party receded when the   government suddenly said it needed to rewrite the tender conditions. Presumably, the government was under pressure from port trade unions and nationalists within the government who were against an Indian involvement. The president's decision on the Colombo terminal followed the port unions' objections to the recently finalised deal on the Hambantota port with the Chinese company CMPort, and their threat to go on strike over it. Sirisena met the port unions and told them that he had put a clause in the agreement with CMPort which said that terms could be changed by mutual consent anytime. On the Colombo east terminal, he categorically stated that he will not give it to a foreign party. India was keen on getting the terminal contract, having opted out of the Hambantota port contract earlier when it was offered to it by the then President Mahinda Rajapaksa. The SLPA invited expressions of interest for the east container terminal in June 2016, according to The Sunday Times. It learned that five consortia had applied. The first was Aitken Spence with Port of Singapore Authority and Shapoorji Pallonji, which is an Indian business conglomerate. The second was China Merchant Holdings International (CMHI) with Evergreen, CMA CGM (shipping company) and Summit Shipping from Bangladesh. The third was John Keells with APM Terminals, Maersk Lines and Container Corporation of India. The fourth was Terminal Link (of which 49 per cent is owned by CMHI) with CMA CGM. The fifth was Hayleys with Westport Shipping Services (of which 25 per cent is owned by Hutchison Ports), Mitsui, Mitsubishi and NYK.....

Published at: 2017-08-03 00:00:04

Speakers at a city discussion underscored the need for strengthening the services of Textile Sustainability Platform (TSP) to help grow textile sector on a sustainable and competitive footing and encourage cleaner production. "We should harness the potentials of digital technology to strengthen communication and deliberation in the TSP and the overall textile sector," said former Chairman of the Business Initiative Leading Development (BUILD) Asif Ibrahim at a discussion at the BGMEA headquarters on Tuesday, said a press release issued on Wednesday. According to a BSS report, BUILD and the Bangladesh Garments Manufacturers’ and Exporters’ Association (BGMEA) organised the discussion on "TSP to accumulate ideas for Cleaner Textile". BGMEA Senior Vice President Faruque Hassan and BUILD former Chairman Asif Ibrahim co-chaired the meeting. Among others, Build CEO Ferdaus Ara Begum, senior representatives from relevant government organisations, private sector chambers and firms, research organisations and development partners attended the meeting. The TSP is a forum for public-private dialogue and cooperation on strengthening environmental sustainability, among other things, in the textile sector. TSP was originated from the Partnership for Cleaner Textile (PaCT) initiative supported by International Finance Corporation (IFC), a project that is expected to enter its second phase soon. Faruque Hassan noted that business organisations are increasingly becoming sensitised about using water resource in a more efficient manner. Ferdaus Ara Begum summarised the discussion under 10 points including tax incentives for green investment, stronger information dissemination, regional peer learning, stronger policy advocacy, spreading the sustainability initiative beyond the suppliers of international brands, promotion of research and innovation, commercialisation of innovation, online monitoring of ETPs and stronger promotion of zero discharge policy, highlighting the benefits of energy and water savings, and incorporation of the lessons of PaCT in its next phase.....

Published at: 2017-08-03 00:00:04