Central Bank Of Bangladesh Begins Disbursing Commission To Primary Dealers

Dhaka, Bangladesh (AHN) - The central bank of Bangladesh has started disbursing underwritten commissions to the primary dealer (PD) banks and financial institution that have traded in government-approved securities, officials said.

The Bangladesh Bank (BB), the country's central bank, credited $2.06 million (BDT 141.60 million) as commission, for the July-May period of the fiscal year 2007-08, to nine PDs through their accounts held with the central bank on Thursday, according to the officials.

"We will inform officially the PDs on Sunday about disbursement of the commission, a BB senior official told AHN in the capital, Dhaka on Saturday, adding that the BB will pay the commission for the month of June after completing its disbursement for eleven months of this fiscal.

Bangladesh's government earlier approved the underwriting commission by fixing the rates for treasury bills and bonds for the PDs aiming to bring dynamism in the country's secondary market, they added.

Under the government decision, the PDs will receive 0.0025 percent (2.50 paisa) as underwriting commission for the government approved treasury bills and 0.0075 percent (7.5 paisa) for the bonds.

Earlier, the central bank of Bangladesh selected nine PDs - eight banks and a non-banking financial institution (NBFI) - to handle government-approved securities.