Small investors financially affected by the recent stockmarket crash will receive a waiver of 50 percent on the interest of marginal loans, the finance minister said Sunday.
However, the interest to be waived must be accrued within the calendar year of 2011 or the financial year 2011-12.
"The order will come into effect from Monday," Finance Minister AMA Muhith revealed the information to reporters emerging from a meeting at his secretariat office.
Muhith held the meeting with different market stakeholders including Securities and Exchange Commission, representatives of Bangladesh Bank, Bangladesh Association of Banks and Association of Bankers Bangladesh, the two stock exchanges, Investment Corporation of Bangladesh and other commercial banks.
The adversely affected investors will have the scope to pay the remaining interest payment through quarterly installments in three years.
In addition, the merchant banks will have to allow the loss-suffering shareholders to conduct fresh transactions in their accounts.
The government also allotted a quota of 20 percent of all initial public offerings (IPOs) – government and private – to be issued in 2012 and 2013 to the investors.
Lenders including merchant banks and brokerage houses will bear the brunt of the losses incurred by the interest waiver, the finance minister said, adding that Bangladesh Bank will later decide appropriate compensation for the affected investors.
On February 22, a government committee led by Md Fayekuzzaman, managing director of Investment Corporation of Bangladesh, made various recommendations including waiver of interests.
The committee found that 15.26 lakh BO accounts were adversely affected and such accounts had outstanding interest payment of up to Tk 499 crore.
The government in October last year announced a stimulus package for stockmarket investors to restore stability in the market.
As part of the package, the government formed a seven-member special scheme committee on November 27 to identify small investors who incurred losses, and the amount they lost.
However, the interest to be waived must be accrued within the calendar year of 2011 or the financial year 2011-12.
"The order will come into effect from Monday," Finance Minister AMA Muhith revealed the information to reporters emerging from a meeting at his secretariat office.
Muhith held the meeting with different market stakeholders including Securities and Exchange Commission, representatives of Bangladesh Bank, Bangladesh Association of Banks and Association of Bankers Bangladesh, the two stock exchanges, Investment Corporation of Bangladesh and other commercial banks.
The adversely affected investors will have the scope to pay the remaining interest payment through quarterly installments in three years.
In addition, the merchant banks will have to allow the loss-suffering shareholders to conduct fresh transactions in their accounts.
The government also allotted a quota of 20 percent of all initial public offerings (IPOs) – government and private – to be issued in 2012 and 2013 to the investors.
Lenders including merchant banks and brokerage houses will bear the brunt of the losses incurred by the interest waiver, the finance minister said, adding that Bangladesh Bank will later decide appropriate compensation for the affected investors.
On February 22, a government committee led by Md Fayekuzzaman, managing director of Investment Corporation of Bangladesh, made various recommendations including waiver of interests.
The committee found that 15.26 lakh BO accounts were adversely affected and such accounts had outstanding interest payment of up to Tk 499 crore.
The government in October last year announced a stimulus package for stockmarket investors to restore stability in the market.
As part of the package, the government formed a seven-member special scheme committee on November 27 to identify small investors who incurred losses, and the amount they lost.
No comments:
Post a Comment