IFC to conduct study on Biman's financial position
Tuesday, 4 December 2007
Naim-Ul-Karim
The International Finance Corporation (IFC) is likely to conduct soon a study on the financial position of cash-starved Bangladesh Biman Airlines Ltd (BBAL).
Sources said the Ministry of Finance (MoF) has approved appointment of the IFC to scrutinise the financial position of BBAL, one of the conditions of the World Bank for providing government-owned company financial support.
They said the IFC, a member of World Bank Group, will make a set of recommendations after studying the financial position of the BBAL to salvage it from financial crisis.
An adviser of the IFC might arrive in the city (today) Tuesday, an IFC official source said adding that they are planning to sit with the BBAL officials concerned to draw up a working schedule.
Regarding the study, the source said, the IFC experts will scrutinise the income and expenditure statements, study on loss incurring routes and suggest the method for making BBAL profitable through minimising operational cost.
The World Bank is expected to offer financial support to the BBAL as the company has already fulfilled many of its conditions, sources said.
They said in fulfilling the WB conditions the government has almost halved the workforce of the BBAL and turned it into a public limited company (PLC).
When asked about the IFC study, a senior official of the BBAL said: "We know about the move, but we have not yet been informed about it officially."
Sources said the national flag carrier that has to frequently reschedule flights due to inadequate number of aircraft in its fleet will require at least two more aircraft shortly to keep its operation unaffected.
About the negotiation with the Boeing Company on buying aircraft, another senior BBAL official said: "We have got a quotation from the Boeing in this connection."
The International Finance Corporation (IFC) is likely to conduct soon a study on the financial position of cash-starved Bangladesh Biman Airlines Ltd (BBAL).
Sources said the Ministry of Finance (MoF) has approved appointment of the IFC to scrutinise the financial position of BBAL, one of the conditions of the World Bank for providing government-owned company financial support.
They said the IFC, a member of World Bank Group, will make a set of recommendations after studying the financial position of the BBAL to salvage it from financial crisis.
An adviser of the IFC might arrive in the city (today) Tuesday, an IFC official source said adding that they are planning to sit with the BBAL officials concerned to draw up a working schedule.
Regarding the study, the source said, the IFC experts will scrutinise the income and expenditure statements, study on loss incurring routes and suggest the method for making BBAL profitable through minimising operational cost.
The World Bank is expected to offer financial support to the BBAL as the company has already fulfilled many of its conditions, sources said.
They said in fulfilling the WB conditions the government has almost halved the workforce of the BBAL and turned it into a public limited company (PLC).
When asked about the IFC study, a senior official of the BBAL said: "We know about the move, but we have not yet been informed about it officially."
Sources said the national flag carrier that has to frequently reschedule flights due to inadequate number of aircraft in its fleet will require at least two more aircraft shortly to keep its operation unaffected.
About the negotiation with the Boeing Company on buying aircraft, another senior BBAL official said: "We have got a quotation from the Boeing in this connection."