China urged to cut interest, extend repayment period by 10 years
Bangladesh has requested China to lower the interest rate on high-interest loans taken from the country, as well as to extend the repayment period by an additional 10 years.
The request was made by Finance Adviser Salehuddin Ahmed during a meeting with Chinese Ambassador Yao Wen at the Secretariat in Dhaka on Tuesday.
After the meeting, the finance adviser told journalists, “We discussed the rate of interest on Chinese loans with him. We have requested a reduction in the interest rate. Additionally, we have asked for an extension of the repayment period for Bangladesh’s loans from China by another 10 years.”
Regarding the discussion on the interest rates of Chinese loans, Md Shahriar Kader Siddiky, secretary at the Economic Relations Division (ERD), who was also present at the meeting, said, “The adviser mentioned that the interest rate should be reduced as much as possible and the repayment period should be extended. They have agreed to convey our concerns to their headquarters in Beijing, and they will inform us of their decision soon.”
After the meeting, the Chinese ambassador told reporters, “We had a fruitful discussion. Our relationship with the interim government will continue. We will work together.”
The previous government created some problems. We could have managed without taking on so many projects, and now we are burdened with debt. This is unfortunate.
Salehuddin Ahmed, Finance adviser
The ambassador mentioned that discussions were held with the finance advisor regarding the ongoing projects in Bangladesh that are funded by China. He stated that these projects will continue, and there were also talks about providing additional necessary support for new initiatives.
Bangladesh has raised concerns about the interest rates, and the matter was discussed, Wen said, adding that there is room for further discussion on the issue.
Over the past eight years, Bangladesh has initiated several large-scale projects with Chinese funding. Among these, four projects, including the Karnaphuli Tunnel, Dasherkandi Sewage Treatment Plant, and the construction of the Four-Tier National Data Centre, have been completed.
Ongoing projects funded by China include the Padma Rail Link, the Single Point Mooring project in Chattogram, the Dhaka-Ashulia Expressway, power transmission lines under PGCB, the power distribution system under DPDC, and the surface water supply project in Rajshahi under Wasa.
The finance adviser also held a meeting with Lilly Nicholls, Canadian High Commissioner in Dhaka, yesterday.
Salehuddin told journalists, “We have spoken with the ambassadors of China and Canada. We will continue with economic matters and will strive to implement the ongoing projects funded by them.”
He went on to say, “We have requested the two countries to continue providing technical and financial support. They have assured us that they will offer even more assistance than before.
“The ambassadors have discussed some issues, and we will quickly identify them. They mentioned that some projects were often left unattended. We will address these problems. We will ensure that future funds are used effectively for public welfare, utilised on time, and that the quality is not compromised in any way.
“The previous government created some problems. We could have managed without taking on so many projects, and now we are burdened with debt. This is unfortunate. We will try to help as much as possible. We are aware of these problems that they have created.”
Regarding speculation on withdrawal of banknotes ofTk1,000 denomination, the finance adviser said, “It won’t be right to say yes or no on this issue. Let’s keep it as it is. There are no problems with it. Such decisions cannot be made easily.”
In response to a query on whether he believed the rumours surrounding the issue, Salehuddin replied, “I haven’t said anything about it, so I won’t comment on rumours. This matter falls under the jurisdiction of the Bangladesh Bank.” ***
