12:48 AM, May 23, 2013 / LAST MODIFIED: 01:30 AM, May 23, 2013

From 3pc to 25pc share

Govt eyes larger Grameen stake

Share this with

Copy this link
Rejaul Karim Byron and Md Fazlur Rahman

The government plans to raise its stake in Grameen Bank back to 25 percent from 3.29 percent in an apparent move to tighten control over the microlender, said officials.
The government has paid only Tk 1.80 crore against its share of the paid-up capital since Grameen's inception three decades ago, causing the government share to plummet from 25 percent to a meagre 3.29 percent.
It is now preparing to pay Grameen Bank Tk 13.20 crore to increase its share back to 25 percent in the organisation that has paid-up capital of Tk 60 crore, said a finance ministry official on condition of anonymity.
The banking division sent a proposal to the finance division to raise the government share by making a payment against the paid-up capital. If approved, the government will make available the money in the upcoming budget next month, the official said.
The recent move came after the Grameen Bank Commission wrote to the finance ministry, suggesting that the government make the payment against the paid-up capital of Grameen Bank.
The government currently owns 3.29 percent share of the bank based on equity, while the remaining 96.71 percent stake is held by Grameen Bank's members.
Finance Minister AMA Muhith had earlier said the government planned to raise the paid-up capital of the microlender.
“The paid-up capital of Grameen Bank is very low and has not been increased in recent times,” he told reporters.
At a recent meeting with the commission, the finance minister directed officials to pay up the government's unpaid part of the paid-up capital, according to sources.
The government last year formed the commission to review the activities of Grameen Bank and 48 other organisations that bear the Grameen name, and make recommendations on how to run the organisations.

Leave your comments

Share this with

Copy this link