Bangladesh Bank has sought the finance ministry’s approval for continuation of services of the current two credit rating agencies for three more years to 2017 as the central bank opts for avoiding procurement regulations-related hassles under a fresh appointment process.
The BB in a letter sought the approval past week, citing a provision in the public procurement regulation that allows the proposed service continuation for the incumbent two rating agencies without undertaking a new appointment process, sources said.
The current contracts with Standard and Poor’s and Moody’s Investors Services will expire on December 31. Both the rating agencies were appointed first in 2009 for 2010 and 2011.
Both the international credit rating agencies gave stable outlook to Bangladesh for 2014 and retained the credit rating of Ba3.
The PPR, 2008 stipulates that for continuation of downstream work, the procuring entity shall ask the initially selected consultant to prepare technical and financial proposals on the basis of the terms of reference furnished by the procuring entity, which shall then be negotiated.
Standard and Poor’s and Moody’s Investors Services were given contracts for Tk 1.17 crore for 2014.
BB officials concerned said they had already collected separate financial proposals from both the rating agencies, adding that the proposals were subject to negotiation.
They said since the PPR has provision for continuation of service contract, it is needless to waste time on a fresh appointment.
Finance ministry officials, however, said that they were yet to be convinced of the proposal made by the central bank on reappointing the rating agencies until 2017.
‘If the financial proposals from the two rating agencies don’t go beyond rationality, the proposal of the BB only could see a hope,’ a senior finance ministry official told New Age on Saturday.
He said that they would form a proposal evaluation committee once finance minister AMA Muhith gave them go-ahead.
-With New Age input
