Hypothetication & offering Intensive by Government of Bangladesh in Exporting

Hypothecation is the practice where a borrower pledges collateral to secure a debt. The borrower retains ownership of the collateral, but it is "hypothetically"

controlled by the creditor in that he has the right to seize possession if the borrower defaults. A common example occurs when a consumer enters into a

mortgage agreement, where the consumer's house becomes collateral until the mortgage loan is paid off.

The detailed practice and rules regulating hypothecation vary depending on context and on the jurisdiction where it takes place. In the US, the legal right for

the creditor to take ownership of the collateral if the debtor defaults is classed as a lien.

Rehypothecation is a practice that occurs principally in the financial markets, where a bank or other broker-dealer reuses the collateral pledged by its clients

as collateral for its own borrowing.

The government has allowed a cash incentive of 5 percent against exports of crust leather and shipbuilding to facilitate exporters of the sectors, officials told on Thursday.

Exporters in the two sectors will receive the cash subsidy against the net repatriation of the free-on-board (FOB) prices of their products effective from Nov. 25, 2009.

We've issued a circular in line with the finance ministry's decision on the cash subsidy for the products,? said a senior official of the Bangladesh Bank, the countrys central bank.

Banks will have to comply with the existing provisions properly to pay such subsidy money to the exporters, the official said.

The Bangladesh government earlier announced a revised list of 15 exportable products, including the two new items, that would receive the cash subsidy for the fiscal year 2009-10

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Cash Subsidy On Potato Exports Double up.

Sources :The Bangladesh government has doubled cash incentives to 20 percent against exports of potatoes to encourage exporters, Potato exporters