Weak capital market: Brokers look for Tk 100b life saver
Image: Bizbangladesh.net
Stock intermediaries are looking for a Tk 100 billion store from the administration to infuse new life into the incurable capital market.
The go-betweens said they are set to present their proposition to the account serve today (Thursday) looking for the store as advances.
Dhaka Bank Securities and EBL Securities are among the 20 signatories to the proposition to be submitted to the legislature.
Conversing with the FE, stock agents said they need the store for a time of six years at a level financing cost of 3.0 percent.
They said all market middle people, for example, stock specialists, trader banks, and resource the executives organizations will be permitted to benefit the credit office.
"Other stock dealers will take an interest in the program today (Thursday). Whenever affirmed, we will pay the advances off alongside enthusiasm for eight portions," said Mohammad Ali, CEO at the Dhaka Bank Securities.
He said the administration can likewise request insurances against its advances to be given to the market go-betweens.
"The arrangement of the borrowers can be the insurances of the proposed credits," Mr Ali said.
He said the market go-betweens need this reserve to assume a strong job.
"We trust the liquidity lack of the capital market will go when we get the store support," he said.
Approached about the methodology for dispensing the reserve, Mr Ali said the Bangladesh Bank will settle on how the cash will be dispensed.
"The national bank can draw in at least one agents to dispense and recoup the advances," he included.
A delegate of a stock agent said the key players had a casual talk with the fund service in regards to the accommodation of their proposition.
"We need more store from the legislature for various stock specialists and shipper banks," the agent said
In the mean time, the state-run Investment Corporation of Bangladesh has likewise looked for a store of Tk 50 billion from the administration to help the market.
The state-run partnership has as of late presented its proposition to the money serve.
After 2010-11 financial exchange crash, the administration gave Tk 9.0 billion under the capital market renegotiating plan. The store was given over to the partnership in three equivalent portions to lessen the sufferings of little financial specialists influenced during the market calamity.
At first, shipper banks and business firms dispensed the assets against the arrangement of influenced speculators at an enthusiasm of 9.0 percent.
Afterward, the loan cost was decreased after the request from trader banks and business firms.
At last, the borrowers got assets at an enthusiasm of 5.0 percent and they dispensed the store against financial specialists' portfolios at an enthusiasm of 7.0 percent.
On finish of payment and recuperation, out of Tk 9.0 billion, around Tk 7.61 billion was again dispensed to the ICB following its supplication made to help the capital market.
Mohammad Saifur Rahman, an official executive of the Bangladesh Securities and Exchange Commission, said the rest of the part of the reserve will be dispersed to some shipper banks and financier firms.
"Their recommendations are in the pipeline," Mr Rahman said.
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