Credit rating deal with two int'l cos by June
Thursday, 23 April 2009
Siddique Islam
Bangladesh will sign an agreement with two international companies by the end of June next to obtain the country's first credit rating report, officials said.
The central bank of Bangladesh expects that the country would receive the first credit rating report by end of the third quarter of this calendar year.
"We're expecting to get the credit rating report by the end of September this year," a senior official of the Bangladesh Bank (BB) told the FE Tuesday, adding that the draft of agreement has already been finalised.
The two companies -- Moody's Singapore and Standard & Poor's International -- have been selected by the proposal evaluation committee on the basis of their financial and technical revaluations.
The central bank earlier formed the six-member proposal evaluation committee, headed by Executive Director of the Bangladesh Bank (BB) Khandakar Muzharul Haque, to hire international rating agencies for the country's credit rating report, officially known as sovereign credit rating report.
"The final draft of agreement will be submitted to the next board of directors meeting of the central bank for necessary approval," the BB official said, adding that the drafts will also be sent to the Ministry of Finance for their consent.
He also said the central bank has been working since 2007 to obtain the country's credit rating report to help mobilise funds from overseas sources and foreign investment.
The country will need to have a credit rating if the government wants to float bonds in foreign currency, because investors, particularly the foreign, evaluate such rating before their investment.
"We are taking time for complying with the existing public procurement regulations to hire the companies for preparing such a document," the BB official said while explaining the delay.
"Both public and private sectors will enjoy the benefit of getting loans from overseas sources at lower cost if the country has a credit rating report," the official added.
The central bank will allow three foreign commercial banks to provide advisory services to the companies during the process of obtaining such a report, the BB officials said.
Bangladesh will sign an agreement with two international companies by the end of June next to obtain the country's first credit rating report, officials said.
The central bank of Bangladesh expects that the country would receive the first credit rating report by end of the third quarter of this calendar year.
"We're expecting to get the credit rating report by the end of September this year," a senior official of the Bangladesh Bank (BB) told the FE Tuesday, adding that the draft of agreement has already been finalised.
The two companies -- Moody's Singapore and Standard & Poor's International -- have been selected by the proposal evaluation committee on the basis of their financial and technical revaluations.
The central bank earlier formed the six-member proposal evaluation committee, headed by Executive Director of the Bangladesh Bank (BB) Khandakar Muzharul Haque, to hire international rating agencies for the country's credit rating report, officially known as sovereign credit rating report.
"The final draft of agreement will be submitted to the next board of directors meeting of the central bank for necessary approval," the BB official said, adding that the drafts will also be sent to the Ministry of Finance for their consent.
He also said the central bank has been working since 2007 to obtain the country's credit rating report to help mobilise funds from overseas sources and foreign investment.
The country will need to have a credit rating if the government wants to float bonds in foreign currency, because investors, particularly the foreign, evaluate such rating before their investment.
"We are taking time for complying with the existing public procurement regulations to hire the companies for preparing such a document," the BB official said while explaining the delay.
"Both public and private sectors will enjoy the benefit of getting loans from overseas sources at lower cost if the country has a credit rating report," the official added.
The central bank will allow three foreign commercial banks to provide advisory services to the companies during the process of obtaining such a report, the BB officials said.