IFC working to streamline BD’s capital market

The International Finance Corporation (IFC) is working on bolstering Bangladesh's capital market after facing an initial dissatisfactory experience on the bond market, according to the IFC Country Manager for Bangladesh, Martin Holtmann.

During a speech at an American Chamber of Commerce in Bangladesh (AmCham) luncheon at a city hotel on Monday, Holtmann - who is also the country manager for Nepal and Bhutan - emphasised the need for a much stronger data-driven capital market in the country.

"We are working on it," he said.

With various business leaders, media representatives and foreign dignitaries in attendance, the AmCham organised the monthly event on the role of IFC as a development partner in Bangladesh.

AmCham President Syed Ershad Ahmed, Vice President Mr Syed Mohammad Kamal and Executive Committee Member Mohammad Shahadat Hossen were among the attendees.

While responding to a query about why the Taka Bond did not fare well, Holtmann mentioned economic hurdles in the deal and focused on an ongoing collaboration with the central bank to address the issues.

In November 2019, the IFC - the private sector arm of the World Bank - launched the Bangla Bond, the country's first-ever Taka-denominated bond for Pran-RFL company at the London Stock Exchange.

The IFC country manager appreciated Bangladesh's financial sector reforms and acknowledged that despite some reforms taking time, the country is moving in the right direction.

He stressed on further financial sector reforms and praised the private sector's active participation in infrastructure development.

Lauding the country's economic growth even amid turbulent economic times such as the pandemic and the Russia-Ukraine war, he referred to the need to improve the tax-GDP ratio, which in Bangladesh is one of the lowest in the world.

AmCham President Syed Ershad Ahmed highlighted the significance of Bangladesh's private sector in driving economic growth, creating employment opportunities, attracting investments and fostering innovation.

He said the IFC, as a member of the World Bank Group, focuses on promoting sustainable economic growth and poverty reduction through investments in the private sector. It plays a crucial role in supporting the development of countries on the path to progress.

In his speech, the AmCham president also called for improving the tax-GDP ratio.

Bangladesh's steady annual GDP growth rate, strategic geopolitical location and skilled workforce make it an attractive destination for foreign direct investment (FDI), positioning it on the path to becoming a developing nation.

smunima@yahoo.com