& çâÌæÚUæð´ ·¤è ¥ôÚU Îð¹Ùæ ÁæÚUè ÚU¹ð´ ¥ÍæüÌ ¥ÂÙð ÜÿØ ÂÚU ŠØæÙ ÚU¹ð´Ð ãæÚU Ù ×æÙð´, €UØô´ç·¤ ·¤æ× ·¤ÚUÙð âð ¥æÂ·¤ô ©gðàØ ·¤è Âýæç# ãôÌè ãñ ¥õÚU ÁèßÙ ·¤æ ¹æÜèÂÙ ÎêÚU ãôÌæ ãñÐ ÖÜð ãè ÁèßÙ ×ð´ ç·¤ÌÙè Öè ·¤çÆÙæ§ü €UØô´ Ù ¥æ°, çÁ™ææâæ ¥õÚU ©ˆâæã ÕÙæ° ÚU¹ð´Ð ŠØæÙ ÚU¹ð´, ÜÿØ ã×ðàææ ¥æÂ·Ô¤ Âæâ ãôÌð ãñ´ çÁ‹ãð´ ÂæÙð ·Ô¤ çÜ° ÂýØæâ ¥æÂ ·¤Öè Öè àæéM¤ ·¤ÚU â·¤Ìð ãñ´Ð

Plan to involve foreign banks in term-lending

By Staff Correspondent
In a bid to boost project financing. the government is 'evolving a strategy to involve the foreign banks in term-lending. bringing them out of their traditional role of trade financing.
A high level meeting of the chiefs of all foreign banks in Bangladesh, Governor of the Bangladesh Bank, and resident representative of the World Bank with the Finance Minister SAMS Kibria yesterday formed a committee to suggest how the foreign banks could involve themselves in project financing.
The committee consisting of representatives from CitiBank, ANZ Grindiays Bank. Standard Chartered Bank and Banque Indosuez will submit its proposals to the finance ministry within three weeks.
Initially the government is thinking about giving some fi-
nanclal incentives to the foreign banks to woo them into term lending.
"Foreign banks are welcome to open up shops here because they help upgrade the banking operations by introducing internal practices. But having said this they are confined to trade financing which Is important. but not a very direct contribution to industrialisation," said Finance Minister Kibria while talking to The Daily Star yesterday. I want them to enter the field of term loans with their better appraisal and monitoring capabilities."
The government is also toying with the idea of cutting _ syndication deals between foreign and local banks and leasing companies to diversify the funds of the foreign banks.
The foreign banks' role in project financing is now seen as essential against the backdrop of a liquidity crisis in the Nationalised Commercial Banks (NCBs).
As of June 12. 1997. the total liquidity of the banking system stood at Tk 1373.77 crore which is seen as adequate by the finance ministry. But the NCBs are facing a liquidity crunch with a paltry total of Tk 27.60 crore in excess liquidity. Sonali Bank is especially in a desperate position with a shortfall of Tk 86.41 crore in liquidity. Agrani Bank has only Tk 7.55 crore excess liquidity, Janata Tk 38.50 crore and Rupali Tk 77.96 crore.
On the other hand, foreign banks' excess liquidity stood at Tk 582.93 crore on the same date and local private banks' Tk 516 crore, of which. Islam! Bank alone had Tk 253.93 crore.
We are also seeking a role of WB and ADB in private sector investment through the International Finance Corporation (IFC)." Kibria added. "It has agreed to provide us with a 10 million US dollars revolving fund for private sector investment.
IFC has already made a long pledge for financing several big projects in 1997-98.
It is to invest 10 million dollars in the 40 million dollars International Textile Mills project. six million dollars in the 20 million dollars Water Guarden Hotel. 11 million dollars in the 40 million dollars Continental Hospital project, six million dollars in the 24 million dollars Square Pharmaceutical expansion project, eight million dollars and another 11.5 million dollars syndicated loan for 32.8 million dollars Prime Blended Yarn Mills project.