ICB drive to enhance liquidity support

Mohammad Mufazzal | Thursday, 19 May 2022

Investment Corporation of Bangladesh (ICB) has moved to collect funds from different government organisations situated in divisional head quarters to support the country's ailing stock market.

The state-run corporation has launched the drive along with its ongoing move for collecting funds from the premier bourse and banks situated in the capital Dhaka.

"The officials of the ICB's branch offices situated in divisional head quarters have been asked to collect funds as Term Deposit Receipt (TDR) from the government organisations," Mr. Hossain said.

The state-run ICB is trying to enhance liquidity support amid the stock market's recent tumble.

The key index of the Dhaka Stock Exchange (DSE) eroded 388 points in the past six straight sessions and the DSE's market capitalisation came down to Tk 5,134 billion on Wednesday with a loss of Tk 273 billion in the just six days.

The ICB's managing director said different organisations such as schools, colleges, and city corporations have funds which are kept as deposits in banks.

"Those organisations can provide matured funds to the ICB as TDR," said the ICB's managing director.

The state-run ICB receives funds from different organisations as TDR paying interest at a rate of around 6.0 per cent.

"The officials of ICB's branch offices have started discussions with different organisations outside the capital Dhaka," said Md. Hossain, managing director at the ICB.

He said the state-run corporation is trying to enhance liquidity support for the country's stock market.

Meanwhile, the ICB injected Tk 250 million into the stock market on Wednesday. The corporation received the fund from the Capital Market Stabilisation Fund (CMSF) on Tuesday.

The CMSF so far provided Tk 1.75 billion to the state-run corporation and the whole fund has already been invested into the stock market.

The ICB also sought Tk 5.0 billion as term deposit from the premier bourse DSE.

"The ICB has already sent letter to the premier bourse DSE seeking fund for the sake of the capital market," said the managing director of the ICB.

The corporation has also sent letters to different banks and financial institutions for renewing term loans so far received by the ICB.

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