ICB to waive Tk182cr in interest on 5,162 stock investors’ loans - Share market analysis of dhaka stock exchange, Bangladesh
Black
White

Send This Page To Friends and Colleagues

You can Enter more than one email separated by (,)
Allowed 100 characters only
20 May, 2018 09:37 AM Source: Dhaka Tribune
money-taka-1526756680753.jpg

The state-owned investment company Investment Corporation of Bangladesh (ICB) has initiated a move to waive Tk182 crore interest on margin loans that the entity provided to 5,162 investors affected by the 2010-11 market crash.

ICB took the initiative so that investors can become active in trading. Of the investors, 5,162 will get 100% interest waiver as their portfolio turned negative due to the market fall since 2010-11 due to tough conditions.

ICB decided to waive the perpetual interest of seven years and three months (from January 1, 2011 to March 31, 2018) for the rehabilitation of margin loan holders, in its 534th board meeting. The facility will be applicable to clients of ICB as well as its two subsidiaries ICB Securities Trading Company Limited and ICB Capital Management Limited.

The affected investors will get a chance to turn around again. If the beneficiaries of this move are market-oriented, the overall impact of this on the stock market will be positive, said stakeholders.

“We hope that the investors will get a chance to get back in the stock market. Reactivation of the accounts will be positive for the investors as well as for the capital market, In the same way, once investors’ accounts turn into positive from negative, it will help ICB in loan recovery,” Chairman of the ICB Prof Dr Mojib Uddin Ahmed told the Dhaka Tribune.

“Obviously, the ICB will lose Tk182 crore from the interest waiver. But in the long run we can compensate for this loss. If inactive investors are active then market transactions will speed up. ICB will earn income from the commission of their share trade,” he added.

Salah Uddin Sobuz, one of the investors who will benefit from this move, said: “ICB’s step is positive for us. I will get back to the trading platform. I hope the stock market will be positive for a long time.”

Financial economist Prof Abu Ahmed said: “Investors are disheartened. Investors put their money in the capital marker to make profit, but this year listed companies are announcing dividends lower than their expectations. In this situation, investors will be benefited by the interest waiver.”

In 2009, ICB waived 80% interest for 7,100 investment accounts.

The corporation is also dealing with another government refinance scheme worth Tk900 crore for small-scale capital market investors who became affected by the 2010-11 market crash.

 

Add Comment | 0   comment

Readers Comment

Nothing found to display
page number 1

Add Comment

Please login first to comment Click here to login
Advanced Charts
Market Map
Real-Time Market Watch
Order Book Data
Stock Screener
LankaBangla Client Login
CSE iTrading
Trading Game
DSE iTrading

Stocks in Focus


Features for Registered Users

E-mail Alerts
Daily Newsletter
Your Watchlist
Advanced Tools
and
Many more

Will automatically display the last quotes you have visited here.

All Rights Reserved - DUInvest © 2013

Login

Do You have an Account ? , Click here to create a new account

Your Opinion Matters

What do you think about the new Website?