bdnews24.com :
The International Finance Corporation, the private sector lending arm of the World Bank Group, has proposed issuance of ‘taka bonds’ worth $ 1 billion in Bangladesh.
IFC officials for South Asia made the proposal at a meeting with Finance Minister Abul Maal Abdul Muhith at the World Bank headquarters in Washington on Saturday.
The minister told journalists he had responded positively to the proposal.
“We’ve responded to their proposal. We’ll start work on that immediately after I return home. The bonds will be issued as soon as possible,” he said.
Muhith said the government had received several proposals on the issuance of taka bonds. “But the IFC proposal seems very positive.”
Bangladesh has ‘dollar bonds’ for expatriates but these will be the first ‘taka bonds’ in the country.
The IFC has already issued local currency bonds in India worth $10 billion.
The second day’s proceedings of the World Bank and International Monetary Fund’s spring meetings began on Saturday with a photo session of the board members.
IMF Managing Director Christine Lagarde and the finance ministers of the member countries joined the session at the IMF headquarters.
The Bangladesh finance minister was in the second row.
Later, Muhith held a meeting with officials of the World Bank’s South Asia and Communications Infrastructure departments.
World Bank Vice President for South Asia region Annette Dixon led his side at the meeting.
The bond issuance proposal came at another meeting with IFC officials led by its Executive Vice PresidentJin-Yong Cai.
Finance Secretary Mahbub Ahmed, Economic Relations Division Secretary Mohammad Mejbahuddin and National Board of Revenue Chairman Nojibur Rahman were present at the meetings.
The finance minister later told reporters: “There is good news for Bangladesh involving $1 billion. IFC has formally placed a proposal to issue taka bonds. We’ve accepted it happily.”
He said the Corporation will raise the $1-billion from the international market and release it in Bangladesh in taka form. Anyone can purchase the bonds, he added.
Muhith expects them to be attractive to expatriate Bangladeshis.
“Foreign banks offer zero interest on deposits. But there will be 4-5 percent interest on taka bonds,” he said.
The minister said: “Our expatriates will benefit if they investment their money in bonds instead of depositing that in banks.”
He said he had agreed to the bond proposal to raise investment in the country.
“Both the Bangladesh government and the IFC will benefit if the bonds are issued.”
To a question on Bangladesh’s gains at the spring meetings, the minister said: “The IFC bond and aid for the transport sector.”
He said several World Bank projects were currently on in the Bangladesh road transport sector and that the global lending agency was keen to support other sectors as well.
“We told them the Bangladesh government is attaching a great deal of importance to rail and water transports. We’ve sought assistance for these two. They have taken up plans on these.”
He said the plans would be finalised through discussions.
A 15-member delegation led by Muhith is participating in the spring meetings, 2015, that began on Friday.
It will end on Sunday.
The International Finance Corporation, the private sector lending arm of the World Bank Group, has proposed issuance of ‘taka bonds’ worth $ 1 billion in Bangladesh.
IFC officials for South Asia made the proposal at a meeting with Finance Minister Abul Maal Abdul Muhith at the World Bank headquarters in Washington on Saturday.
The minister told journalists he had responded positively to the proposal.
“We’ve responded to their proposal. We’ll start work on that immediately after I return home. The bonds will be issued as soon as possible,” he said.
Muhith said the government had received several proposals on the issuance of taka bonds. “But the IFC proposal seems very positive.”
Bangladesh has ‘dollar bonds’ for expatriates but these will be the first ‘taka bonds’ in the country.
The IFC has already issued local currency bonds in India worth $10 billion.
The second day’s proceedings of the World Bank and International Monetary Fund’s spring meetings began on Saturday with a photo session of the board members.
IMF Managing Director Christine Lagarde and the finance ministers of the member countries joined the session at the IMF headquarters.
The Bangladesh finance minister was in the second row.
Later, Muhith held a meeting with officials of the World Bank’s South Asia and Communications Infrastructure departments.
World Bank Vice President for South Asia region Annette Dixon led his side at the meeting.
The bond issuance proposal came at another meeting with IFC officials led by its Executive Vice PresidentJin-Yong Cai.
Finance Secretary Mahbub Ahmed, Economic Relations Division Secretary Mohammad Mejbahuddin and National Board of Revenue Chairman Nojibur Rahman were present at the meetings.
The finance minister later told reporters: “There is good news for Bangladesh involving $1 billion. IFC has formally placed a proposal to issue taka bonds. We’ve accepted it happily.”
He said the Corporation will raise the $1-billion from the international market and release it in Bangladesh in taka form. Anyone can purchase the bonds, he added.
Muhith expects them to be attractive to expatriate Bangladeshis.
“Foreign banks offer zero interest on deposits. But there will be 4-5 percent interest on taka bonds,” he said.
The minister said: “Our expatriates will benefit if they investment their money in bonds instead of depositing that in banks.”
He said he had agreed to the bond proposal to raise investment in the country.
“Both the Bangladesh government and the IFC will benefit if the bonds are issued.”
To a question on Bangladesh’s gains at the spring meetings, the minister said: “The IFC bond and aid for the transport sector.”
He said several World Bank projects were currently on in the Bangladesh road transport sector and that the global lending agency was keen to support other sectors as well.
“We told them the Bangladesh government is attaching a great deal of importance to rail and water transports. We’ve sought assistance for these two. They have taken up plans on these.”
He said the plans would be finalised through discussions.
A 15-member delegation led by Muhith is participating in the spring meetings, 2015, that began on Friday.
It will end on Sunday.
