Bangladesh's credit rating
The latest credit rating of Bangladesh — a demotion from B1to B2 — by the Moody's Investors Service (popularly known as Moody's) has indeed aroused some amount of concern in areas of investment, external trade and private sector foreign borrowing. Like Fitch and Standard & Poor's, Moody's evaluation of a...
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What does Moody's downgrade imply?
The US-based international credit rating agency, the Moody's on Monday lowered Bangladesh's long term credit rating from B1 to B2, citing lingering political uncertainty, deteriorating law and order and weak domestic demand. The B2 rating, classified as "highly speculative," signals significant credit risks, reflecting concerns over the country's economic stability...
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Ensuring right business environment
Creating a business-friendly environment in Bangladesh has been a persistent challenge for decades. One does not need to be an expert to recognise the barriers, starting from pervasive corruption to bureaucratic inefficiencies, entrepreneurs face. Despite repeated promises made by successive governments to address these obstacles, little has been achieved in...
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Bangladesh's stock markets vs. India's
The Indian stock exchange outperforms the Bangladeshi stock market in terms of scale, diversity, and investor trust. India's Bombay Stock market (BSE), Asia's oldest, currently has an index value of 77,580.31 points, whereas the Dhaka Stock Exchange (DSE) index is very tiny at 5,328 points. This imbalance is not only...
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Informal lending a debt trap
In Bangladesh, alongside banks, there exists a vast network of informal lenders who offer quick loans without the paperwork or restrictions that banks require. While convenient, these informal loans come with high-interest rates that can quickly trap borrowers in a cycle of debt. For many, what begins as a short-term...
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