The Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI) has put thrust on a vibrant capital market.
"In the absence of a strong capital market, the GDP growth target of 7.0 per cent for FY12 will be difficult to achieve," the MCCI said in its latest review on the economy of Bangladesh.
"A strong capital market is essential to encourage the general people and the business community to invest in shares. Weak and fragile capital market retracts investment environment and directly or indirectly reduces and slows down economic growth, the prestigious chamber said.
It said capital market is the 'heart' of investment through which investors invest in shares of industries, financial institutions and other commercial organizations, and thus accelerates development and growth.
To strengthen and bring the much needed stability in the capital market, the FY12 budget adopted a number of measures. These include: i) TIN certificate for BO Account holder would not be mandatory; ii) there shall be no capital gain tax, as before, on the BO Account holders; iii) the rate of tax deductible at source for brokerage commission of stock brokers listed with SEC was increased from 0.05% to 0.10%; and iv) undisclosed money would be allowed for investment in the capital market as well as in treasury and infrastructure bonds on payment of a 10 per cent tax on the legalised income.
Commenting on industrial term loans, the MCCI said the disbursement of industrial term loans during Q3 increased by 22 per cent to Tk 75.64 billion from Tk 62.13 billion during the corresponding period of the previous fiscal year. The recovery of industrial term loans was Tk 68.57 billion during Q3 of FY11, which was 47 per cent higher than the recovery of Tk 46.51 billion during the same period of FY10.
The exchange rate of Taka per US$ rose to Tk 74.2329 as of June 30, 2011 from Tk 69.4100 at the end month of July, 2010. Taka thus depreciated by 6.95 per cent in FY11. This depreciation was due to the increased demand for foreign currency to finance current account transactions. Besides, BB is also providing overdraft (OD) facilities to the commercial banks to settle payment bills against import of essential items, including food grains, petroleum products and power plant equipment.
"In the absence of a strong capital market, the GDP growth target of 7.0 per cent for FY12 will be difficult to achieve," the MCCI said in its latest review on the economy of Bangladesh.
"A strong capital market is essential to encourage the general people and the business community to invest in shares. Weak and fragile capital market retracts investment environment and directly or indirectly reduces and slows down economic growth, the prestigious chamber said.
It said capital market is the 'heart' of investment through which investors invest in shares of industries, financial institutions and other commercial organizations, and thus accelerates development and growth.
To strengthen and bring the much needed stability in the capital market, the FY12 budget adopted a number of measures. These include: i) TIN certificate for BO Account holder would not be mandatory; ii) there shall be no capital gain tax, as before, on the BO Account holders; iii) the rate of tax deductible at source for brokerage commission of stock brokers listed with SEC was increased from 0.05% to 0.10%; and iv) undisclosed money would be allowed for investment in the capital market as well as in treasury and infrastructure bonds on payment of a 10 per cent tax on the legalised income.
Commenting on industrial term loans, the MCCI said the disbursement of industrial term loans during Q3 increased by 22 per cent to Tk 75.64 billion from Tk 62.13 billion during the corresponding period of the previous fiscal year. The recovery of industrial term loans was Tk 68.57 billion during Q3 of FY11, which was 47 per cent higher than the recovery of Tk 46.51 billion during the same period of FY10.
The exchange rate of Taka per US$ rose to Tk 74.2329 as of June 30, 2011 from Tk 69.4100 at the end month of July, 2010. Taka thus depreciated by 6.95 per cent in FY11. This depreciation was due to the increased demand for foreign currency to finance current account transactions. Besides, BB is also providing overdraft (OD) facilities to the commercial banks to settle payment bills against import of essential items, including food grains, petroleum products and power plant equipment.
Source: FE
No comments:
Post a Comment