Dhaka, Thu, Sep 2018

Economy

60pc Farmers Bank shares to be sold out, says Muhith

He says gas price to go high once LNG supply begins

08 March 2018,Thursday, 23:10



Finance Minister AMA Muhith on Thursday said different institutions will buy 60 percent shares of cash-strapped Farmers Bank Ltd to rescue it.

“If the bank management doesn’t agree to sell the shares, they’ll be forced to do so,” he said while talking to reporters after a pre-budget discussion with the country’s economists at state guesthouse Padma in the city.

Muhith said the economists expressed their concern over the crisis prevailing in the banking sector and suggested closing the crisis-hit banks. “They told me to let them die and called for not providing bailout to any institution. But I told them that I won’t let them die.”

He also said as part of the initiatives to rescue the banks, different organistions will buy their shares.

Asked whether any action will not be taken against those responsible for the scam, the minister said they will take action.

As the economists expressed their concern over the liquidity crisis in the banking sector, Muhith disagreed with them, saying, “But I don’t agree with them. Because call money rate is still low at 4 percent and it doesn’t reflect the liquidity crisis.”

The participants put forward some suggestions at the meeting, including providing jute goods exporters 5 percent cash incentives, the finance minister said, adding that he will consider it.

Mentioning that the leather sector is still doing good, he said the issue of its waste management is still to be sorted out. “I’ll try to do this.”

About the government’s plan to take foreign loan, Muhith said the economists strongly opposed it saying it will not be a wise decision.

He also said the gas price will surely go high once the supply of LNG begins in the country this year. “We have no other option. We need to hike the gas price if we want development to continue,” he said.

 

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