Offer to China to reduce interest rates and extend repayment period

Offer to China to reduce interest rates and extend repayment period

own reporter, morenewsbd
own reporter, morenewsbd

Published: 07:30 20 August 2024

The financial adviser has proposed to reduce the interest rate of high interest loans to China and extend the grace period or time for debt repayment. Salehuddin Ahmed.

On Tuesday (August 20) at 10:30 a.m. at the Secretariat, Chinese Ambassador to Bangladesh Yao Wen met with the Finance Adviser. After the meeting, the financial adviser told reporters. Meanwhile, Secretary of Economic Relations Department (ERD). Shahriar Quader Siddiqui was present.

The adviser said, we have asked China to reduce the high loan interest rates. Also asked to extend the loan repayment period. The Chinese ambassador said that they will convey this proposal to Beijing and will inform us as soon as possible.

He said, we have spoken to two ambassadors. What we have started, the economic issues we will continue. I will try to implement their projects. I have requested them to continue your technical support, financial support. They assured us they would do more than they usually do. They may have some issues, we will quickly identify them. We won't take time. They say they used to leave it for a long time. We said we would look into it. The money that will come in the future should be used properly for the welfare of people. It should be used on time and the quality should not be compromised in any way.

The advisor says there is a problem. The previous government created some problems. Many projects were going on without taking up, we are burdened with debt. These are sad things. We will try to help as much as possible. We are wary of the problems they have created.
When asked whether the Teesta project has been discussed with China, he said that there are some issues with China and some issues with Canada. I have not discussed them in detail. Many other issues were discussed.

Regarding the loan taken from China in exchange of high interest rate, he said, we talked to him about the rate of interest, he said he will see. I have asked to extend the repayment period for another 10 years.
The Awami League government has left a debt burden of Tk 18 lakh crore, when asked how to reduce it, the advisor said, it is a big pressure, a great pressure. Because they gave them and made a contract. Donors have to say it's a lot of pressure. We are reviewing them. We are careful about it. We are also talking about it among ourselves. Having started with such a huge debt burden, it is very difficult for us. We have loan and refund issues. We will try to solve them.

Secretary of Economic Relations Department (ERD) regarding loans taken from China in exchange for high interest rates. Shahriar Quader Siddiqui said, the advisor said about the rate of interest it should be reduced as much as possible and the repayment period should be extended. They have agreed that they will forward our concern to the Beijing headquarters and they will let us know soon.

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