Auto re-investment in wage earners' bonds to be reintroduced
Saturday, 13 November 2010
The government is set to re-introduce auto re-investment facilities for three saving tools for wage-earners following requests from the non-resident Bangladeshis and significant fall in investment of the remitters.
Finance Minister AMA Muhith recently instructed the Internal Resources Division (IRD) to review performance of the three saving instruments -- wage earners' development bond, US dollar bond and US dollar premium bond.
The instruction came following resentment created among the wage earners in the Middle East and Southeast Asian countries. The government made change in the budget for current fiscal with the aim to check abuse of the wage-earners bond and make sure about investment by real wage earners.
The government has found 11 per cent decline in investment in the savings tools in the current fiscal compared to the corresponding period of the last fiscal.
Nazmul Islam, Bangladesh consul general in Jeddah, has conveyed to the government about wage earners' resentment over slashing of interest rates and scrapping of auto re-investment option.
He also forwarded a letter of Bangladeshi wage earners in Jeddah sent to him requesting re-introduction of the re-investment option and keeping interest rate unchanged at 12 per cent for the three investment tools for expatriates.
In an urgent move, Labour, Expatriates Welfare and Overseas Employment Minister Khandaker Mosharraf Hossain requested the finance minister to consider the matter.
Wage earners in Jeddah have submitted a letter to the consulate with the signatures of 33 wage earners who requested the Bangladesh government to reconsider the matter for keeping smooth flow of remittance.
They said the wage earners will be discouraged to send their hard-earned money to the country because of cut in benefits in investment areas.
"We sent hard-earned money as remittance. Reserve surpassed US$ 10 billion for this and strengthened the economy," they wrote in a letter to Bangladesh consulate in Jeddah.
They also requested the government to maintain the previous rate of interest at 12 per cent instead of present 10.5 per cent.
The wage earners have found the investment tools convenient for them as they come to the country after a few years' interval. They said a large number of wage earners meet their family expenditures with the interest amount of the saving tools.
Bangladesh consulate in Jeddah said the government has encouraged investment in those bonds by taking different measures and the bonds became popular among the wage earners.
"Some leading Bangladeshi businessmen in Jeddah have requested me to convey their sufferings to the policy makers. Major portion of the remittance comes from Middle-East, which is invested in the wage earners' bonds," he wrote.
Talking to the FE, Mahmuda Mina, director general of National Savings Directorate (NSI), said they have received instruction of the finance minister and preparing necessary documents in this connection.
NSD officials said auto re-investment facilities might be provided with some conditions. There might be mandatory rules for showing relevant documents of wage earners for availing the facilities of auto re-investment.
People who come back from abroad after a few years of job will not be considered as wage earners, they said.
Finance Minister AMA Muhith recently instructed the Internal Resources Division (IRD) to review performance of the three saving instruments -- wage earners' development bond, US dollar bond and US dollar premium bond.
The instruction came following resentment created among the wage earners in the Middle East and Southeast Asian countries. The government made change in the budget for current fiscal with the aim to check abuse of the wage-earners bond and make sure about investment by real wage earners.
The government has found 11 per cent decline in investment in the savings tools in the current fiscal compared to the corresponding period of the last fiscal.
Nazmul Islam, Bangladesh consul general in Jeddah, has conveyed to the government about wage earners' resentment over slashing of interest rates and scrapping of auto re-investment option.
He also forwarded a letter of Bangladeshi wage earners in Jeddah sent to him requesting re-introduction of the re-investment option and keeping interest rate unchanged at 12 per cent for the three investment tools for expatriates.
In an urgent move, Labour, Expatriates Welfare and Overseas Employment Minister Khandaker Mosharraf Hossain requested the finance minister to consider the matter.
Wage earners in Jeddah have submitted a letter to the consulate with the signatures of 33 wage earners who requested the Bangladesh government to reconsider the matter for keeping smooth flow of remittance.
They said the wage earners will be discouraged to send their hard-earned money to the country because of cut in benefits in investment areas.
"We sent hard-earned money as remittance. Reserve surpassed US$ 10 billion for this and strengthened the economy," they wrote in a letter to Bangladesh consulate in Jeddah.
They also requested the government to maintain the previous rate of interest at 12 per cent instead of present 10.5 per cent.
The wage earners have found the investment tools convenient for them as they come to the country after a few years' interval. They said a large number of wage earners meet their family expenditures with the interest amount of the saving tools.
Bangladesh consulate in Jeddah said the government has encouraged investment in those bonds by taking different measures and the bonds became popular among the wage earners.
"Some leading Bangladeshi businessmen in Jeddah have requested me to convey their sufferings to the policy makers. Major portion of the remittance comes from Middle-East, which is invested in the wage earners' bonds," he wrote.
Talking to the FE, Mahmuda Mina, director general of National Savings Directorate (NSI), said they have received instruction of the finance minister and preparing necessary documents in this connection.
NSD officials said auto re-investment facilities might be provided with some conditions. There might be mandatory rules for showing relevant documents of wage earners for availing the facilities of auto re-investment.
People who come back from abroad after a few years of job will not be considered as wage earners, they said.