Proposal to give part of Biman's stake to BPC against arrear oil bills rejected
Saturday, 1 September 2007
Doulot Akter Mala
The Ministry of Finance recently turned down a proposal of the energy ministry to allocate Bangladesh Petroleum Corporation (BPC) a portion of national airlines' share against its outstanding fuel bills.
The fund-starved energy ministry recently sought the stake of Bangladesh Airlines Limited, the newly formed public limited company, against the backdrop of a large amount of outstanding fuel purchase bills.
Talking to the FE Friday, energy secretary ANM Nasir Uddin said: "We have sought some shares of the airlines if it fails to clear BPC's outstanding bills."
But, the finance ministry expressed its desire to hold all the stakes of formerly Biman Bangladesh Airlines as it has taken the BPC's liabilities worth Tk 75 billion through issuance of bonds under the budget for the current fiscal, he said.
The government, which fully owns the airlines, has a plan to offer 49 per cent of its share to the private sector and retain 51 per cent.
It has been trying to make the airlines run as a commercially viable entity before offloading the shares to private sector.
But, the BPC is also facing financial problems due to a large amount of outstanding bills with the airlines and soaring fuel price in the international market.
The airlines owes the BPC over Tk 17 billion in unpaid fuel bills. The finance ministry has turned down a proposal of the airlines to write off the entire amount of fuel purchase bills worth Tk 17 billion.
Sources said the Ministry of Finance is no longer interested to take such liabilities of the state-owned entities as it has already taken the BPC's financial burden.
The country's four nationalised commercial banks - Sonali, Janata, Agrani and Rupali - together have outstanding loans worth Tk 92 billion with the BPC.
Recently, the central bank decided to provide US$ 300 million to the BPC through three NCBs for imports of fuel oil, considering its financial constraints.
The Ministry of Finance recently turned down a proposal of the energy ministry to allocate Bangladesh Petroleum Corporation (BPC) a portion of national airlines' share against its outstanding fuel bills.
The fund-starved energy ministry recently sought the stake of Bangladesh Airlines Limited, the newly formed public limited company, against the backdrop of a large amount of outstanding fuel purchase bills.
Talking to the FE Friday, energy secretary ANM Nasir Uddin said: "We have sought some shares of the airlines if it fails to clear BPC's outstanding bills."
But, the finance ministry expressed its desire to hold all the stakes of formerly Biman Bangladesh Airlines as it has taken the BPC's liabilities worth Tk 75 billion through issuance of bonds under the budget for the current fiscal, he said.
The government, which fully owns the airlines, has a plan to offer 49 per cent of its share to the private sector and retain 51 per cent.
It has been trying to make the airlines run as a commercially viable entity before offloading the shares to private sector.
But, the BPC is also facing financial problems due to a large amount of outstanding bills with the airlines and soaring fuel price in the international market.
The airlines owes the BPC over Tk 17 billion in unpaid fuel bills. The finance ministry has turned down a proposal of the airlines to write off the entire amount of fuel purchase bills worth Tk 17 billion.
Sources said the Ministry of Finance is no longer interested to take such liabilities of the state-owned entities as it has already taken the BPC's financial burden.
The country's four nationalised commercial banks - Sonali, Janata, Agrani and Rupali - together have outstanding loans worth Tk 92 billion with the BPC.
Recently, the central bank decided to provide US$ 300 million to the BPC through three NCBs for imports of fuel oil, considering its financial constraints.