18 PCBs show interest to utilise $300m fund given by Exim Bank of Turkey

---

FE Report A good number of private commercial banks (PCBs) Monday expressed their willingness to utilise the proposed $ 300 million fund in private sector provided by Exim Bank of Turkey, said a release. They showed their interest at a meeting held with the leaders of Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) at the federation building. Chaired by FBCCI president Kazi Akram Uddin Ahmed, the meeting was also attended by executives from18 commercial banks, FBCCI first vice-president Monwara Hakim Ali, vice-president Helal Uddin, FBCCI directors, Charge-de-Affaires of the Turkish embassy in Dhaka and commercial councellor. A list of 18 banks will be sent as the designated banks of Exim Bank of Turkey. Those are: Standard Bank, Bank Asia, Dhaka Bank, Mercantile Bank, First Security Islami Bank, Shahjalal Islami Bank, South East Bank, United Commercial Bank, ICB Islami Bank, AB Bank, Brac Bank, Social Islami Bank, Al-Arafah Islami Bank, Prime Bank, Eastern Bank, City Bank, One Bank and NCC Bank. Exim Bank of Turkey will finalise the list of the designated banks. The bank executives showed their eagerness to use the proposed loan, 85 per cent of which will be spent for financing the import of goods from Turkey. An agreement will be signed between the Exim Bank and the designated banks. The interest rate in case of consumer goods will be Libor+3.00 and for a two- year period. For the project loan the interest will be Libor+3.75 for 10 years time. Akram Uddin Ahmed said the potential of the bilateral trade between Bangaldesh and Turkey is enormous. He informed the meeting that in 2011-12 FY Bangladesh's exports to Turkey were $551 million against its import from the country worth $104 million. Major imports from Turkey include base metal, machinery, vegetable products and vehicles. Akram Uddin called upon the bankers to seriously consider the use of the proposed fund of the Turkish bank while suggested to use it for importing machinery from Turkey. Earlier Turkish prime minister proposed to provide the loan of $300 million from the Exim Bank of Turkey during the visit of the Bangladehsi prime minister. A delegation of the Exim Bank of Turkey came to Bangladesh in June 2012 to hold discussion with the ERD. In the meeting, the decision to use the loan in private sector was finalised with FBCCI being nominated as the corrdinator of the process. Accordingly, a MoU was signed between the Exim Bank of Turkey and FBCCI on June 11.