News
Now, Bangladesh asks for USD 4.5 bn from IMF
Bangladesh has formally requested for a USD 4.5 bn loan from Washington-based multilateral lender International Monetary Fund (IMF) to tackle the ongoing financial crisis in the country, the country’s media reported.Bangladesh has asked for the loan from the IMF in view of rapidly declining foreign exchange (Forex) reserves, Dhaka Tribune reported.
In a letter to IMF Managing Director Kristalina Georgieva, the government has sought the loan as a balance of payment and budget support as well as to mitigate the effects of climate change on Bangladesh.According to Bangladesh Finance Ministry officials, USD 1.5 billion of the USD 4.5 billion, which the country has sought to mitigate the on-going crisis, would most likely be interest-free and the remaining amount would come at an interest of less than 2 per cent.
An IMF mission is expected to visit Bangladesh in September to negotiate the terms and conditions for the loan, the report said.A deal is expected to be locked by December, and to be placed before the global lender’s board meeting in January, the officials added.Renowned economist Debapriya Bhattacharya, however, said Bangladesh will have to go through several conditions to get a loan from the multilateral lender, which puts harsh conditions in front of the borrower country to get the loan.
“Right now, we have a large trade deficit. At the same time, remittances are also on the decline. There is great pressure on the exchange rate,” the economist explained.
He also said that imports were getting difficult owing to the lack of foreign exchange, and “going to the IMF is logical and the right move at this time of crisis”.
“Sri Lanka’s delay in doing so caused them a huge loss,” Bhattacharya added.
The economist said the IMF money would mainly be used to meet the large deficit in foreign transactions at the moment, and to stabilise the exchange rate of Taka against the dollar by selling dollars.
“However, before receiving this money, the government has to take several steps to show they are responsible in the eyes of the IMF. This is what we call pre-action. Also, they have to take some steps before releasing each installment,” he said.
COPF final report on USD 2.5 mn cyber fraud recommends action against all responsible
The US$2.5 million loss incurred during Sri Lanka’s foreign debt repayment to Australia was a clear case of a cybercrime and theft, Committee on Public Finance (COPF) Chairman Dr. Harsha de Silva told Parliament yesterday.
Presenting the COPF final report on the cyber fraud, Dr. de Silva said the incident amounted to a serious financial crime and called for a comprehensive investigation, by law enforcement authorities, to identify and prosecute all those responsible.
The report revealed serious governance, procedural and operational failures that enabled the fraudulent transfer of public funds, while recommending sweeping reforms to strengthen cybersecurity, financial controls and public debt management systems.
According to the report, officials of the Treasury and the Central Bank bore responsibility for governance lapses that contributed to the failures. It also highlighted the fact that the Ministry of Finance was operating an outdated Microsoft Exchange Server after security support had ended, while basic safeguards, such as multi-factor authentication, had not been implemented.
The COPF said suspicious payment instructions linked to debt repayments involving India, the United Kingdom, Germany and Belgium had also been detected, preventing further losses. However, the US$ 2.5 million fraud materialised only in the repayment transaction involving Australia.
The report has noted that officials had failed to verify lender email domains, relied on unverified email communications and lacked adequate internal controls, allowing the fraud to continue for months.
Although the investigation uncovered system-wide weaknesses across several institutions, only four mid-level Finance Ministry officials had been suspended so far, the report said.
The COPF has recommended a special audit of the foreign debt repayment process, strengthened cybersecurity measures across state institutions, updated financial regulations and improvements to public debt management systems.
by Saman Indrajith
News
Opposition signs no-confidence motion against Justice Minister for dereliction of duty over Negombo Prison deaths
Opposition Leader Sajith Premadasa, together with Opposition MPs, yesterday signed a No-Confidence Motion (NCM) in Parliament against Justice Minister Harshana Nanayakkara.The move comes in response to the unrest at the Negombo Prison, where both prison officers and inmates were killed.
Opposition members said the Minister had failed to fulfill his responsibility and accountability regarding their safety.According to the Opposition group, the NCM seeks to hold the Minister directly accountable for lapses in ensuring protection within the prison system.
The Attorney General yesterday informed the Supreme Court that the government has decided to review the legality of agreements entered into by the previous administration to hand over the country’s electronic visa issuance operations to private companies.
Additional Solicitor General Viveka Siriwardena, appearing for the Attorney General, made the submission when the Supreme Court took up the fundamental rights petitions filed by former MPs President’s Counsel M.A. Sumanthiran, Patali Champika Ranawaka, and Rauff Hakeem, challenging the previous Cabinet’s decision to outsource the e-visa system.
The petitions were heard before a three-judge bench, comprising Chief Justice Preethi Padman Surasena and Justices Achala Wengappuli and Arjuna Obeyesekere.
The Additional Solicitor General informed court that the current Cabinet had appointed a subcommittee to examine the legality of the agreements with the private companies and requested time to report on its findings, stating that the review was still underway.
President’s Counsel Sumanthiran, appearing as one of the petitioners, told the court that although the present government had indicated its intention to cancel the transaction, the petitioners wished to proceed with the case.
He noted that members of the current Cabinet had been named as respondents in the petitions.The Supreme Court directed the petitioners to issue notice on the members of the current Cabinet, named as respondents, and fixed September 29 for further proceedings.
Spain leave it late to book semifinal date with France
Showers will occur in the Sabaragamuwa, Western and North-western provinces and in Galle, Matara, Kandy and Nuwara-Eliya districts
US$ 2.5 mn cyber heist exposes system failures
Opposition signs no-confidence motion against Justice Minister for dereliction of duty over Negombo Prison deaths
AG informs SC of e-visa agreement review
Navy, Coast Guard seize smuggled pharmaceuticals and cosmetics in Puttalam
‘Dates have the highest sugar content to fight Coronavirus’
Sunday Island 27 December – Headlines
#SundayIsland 17th December – Headlines
Sunday Island – 28th March
Sunday Island Headlines – 21 March
Sunday Island – 21st February – Headlines
-
News6 days agoSingapore-based Buddhist monk marks nearly four decades of humanitarian service
-
News1 day agoHerath warns prospective migrant workers not to get fleeced by racketeers
-
News5 days agoAI concerned over proposed SL military deployment in Haiti
-
Midweek Review3 days agoUnexpected focus on ‘pieces of tin’ worn by military men
-
Latest News4 days agoNyamhuri and Ngarava stun Bangladesh by defending 141
-
Features6 days agoThe NPP’s New Challenge: Balancing Easter Lawfare and Economic Welfare
-
News2 days agoNegombo Prison riot: Ensuring protection of prisoners fundamental responsibility of the state – UN
-
Editorial3 days agoPrison riots and political battles