GDP Slows & Imports Surges - Bangladesh's Financial Shifts

• Bangladesh’s GDP Growth Slows to 3.91% in Q4 FY24, affected by reduced factory output Source

• BB Eases Rules for Industrial Imports allowing importers to use a letter of agreement for purchases to boost economic activity in economic zones Source

• Import Settlement Increased 24% in September as payments for import LCs rose to USD 5.87 billion, driven by overdue payments Source

• Interest Payments Strain Net Foreign Loan Inflow with USD 846 million received in Q1 FY25 amid rising debt repayments Source

•  Net Sales of Savings Tools fell by 24% to BDT 42.23 billion in July-August FY25 compared to last year's BDT 55.62 billion Source

• Govt to Buy LNG Cargoes from TotalEnergies with agreements signed for two shipments to enhance energy supply Source

• Oil Prices Drop as Iran Tensions Ease with Brent crude falling 6% to around USD 71 per barrel Source

• Russia Hikes Interest Rates to 21% to counter domestic inflation pressures amid rising economic costs Source

• Bangladesh Bank Reduces Export Development Fund to USD 2.51 billion to minimize fund misuse Source

Economy & Banking

• BB Eases Rules for Industrial Imports: Bangladesh Bank has permitted importers to use a letter of agreement instead of a letter of credit (LC), enabling short-term import credits and foreign loans for economic zones like EPZs and EZs Source

• Import Settlement Up 24% in September: Payments for import LCs rose to USD 5.87 billion, a notable increase from last year’s USD 4.72 billion, driven by overdue settlements Source

• Interest Payments Impact Foreign Loan Inflow: With rising interest payments, Bangladesh's foreign loan inflow saw a drop, totaling USD 846 million in the first quarter of FY25 as debt repayments hit USD 1.13 billion Source

• Net Sales of Savings Tools Drop by 24.07%: Sales of savings instruments fell in July-August FY25 to BDT 42.23 billion from BDT 55.62 billion in FY24 Source

• Six Priority Reforms Under WB Conditions: Reforms, including new NPL definitions and tax expenditure rationalization, are tied to World Bank credit support Source

Energy & Power

• Gov Buys LNG from Spot Market: The government will purchase LNG cargoes from TotalEnergies, with the first shipment costing USD 54.80 million Source

• Renewable Energy Tax Incentives Restored: Tax exemptions until 2036 are available for renewable power investors who began production by June 2024, with new incentives for projects starting by June 2025 Source

Trade & Commerce

• Dollar Payments via Credit Cards Down 21.52%: In August, credit card dollar payments fell due to the economic slowdown and policy shifts.

• BTRC Drafts Guidelines for Satellite Services: New regulations may open the market for foreign satellite operators, including Starlink Source

International

• Russia Raises Interest Rates to 21%: The Central Bank of Russia increased rates, hitting a 20-year high amid rising domestic prices due to military expenditures Source

• Oil Prices Decline as Iran Tensions Ease: Brent crude prices dropped 6%, settling at USD 71 per barrel after fears of strikes on Iran diminished Source

• Gold Reaches Record Highs: Gold prices hit USD 2,789.73 per ounce as the U.S. presidential election stoked market uncertainty Source

Corporate

• Berger Paints Sees 21% Profit Growth: Berger Paints reported a BDT 565.9 million profit in Q2, marking a year-on-year 21% rise Source

• PRAN to Reopen Textile Mills: PRAN-RFL will reopen two BTMC mills under PPP, paying BDT 100 million for three years of use Source

• Grameenphone Profits Despite Revenue Dip: GP’s Q3 profit rose 1.1% to BDT 7,600 million despite a 3.8% revenue drop Source

• Robi’s Q3 Profit Surges 78%: Robi Axiata's profit jumped to BDT 1,887 million, supported by reduced costs, despite a dip in data revenue Source