Dhaka, Dec 10 (V7N) – The International Air Transport Association (IATA) has reported a notable $124 million reduction in airline funds blocked in Bangladesh over the past six months. The amount, previously $320 million in April, now stands at $196 million, according to an IATA press release issued on Monday.

Despite this improvement, Bangladesh remains among the top three countries with the highest amount of blocked airline funds globally. IATA emphasized the need for Bangladesh’s central bank to prioritize airlines' access to foreign exchange to meet international commitments.

"Over the last six months, we have observed substantial reductions in blocked funds in countries like Pakistan, Bangladesh, Algeria, and Ethiopia. Governments must remove all barriers preventing airlines from repatriating revenues in compliance with international agreements," said IATA Director General Willie Walsh.

He warned of the potential economic impact of restricted aviation connectivity. "No country wants to lose aviation services that contribute to economic prosperity. If airlines cannot access their revenues, they cannot sustain operations. Economies will inevitably suffer if connectivity collapses," Walsh added.

As of October 2024, global airline funds blocked by governments totaled $1.7 billion, a slight improvement from $1.8 billion in April. Nine countries account for 83% of these blocked funds, amounting to $1.43 billion.

Bangladesh’s delays in fund repatriation stem primarily from a shortage of US dollars, a challenge that intensified after the Russia-Ukraine conflict began in February 2022. The country's foreign exchange reserves plummeted from over $40 billion to below $20 billion due to rising prices of food, energy, and fertilizer.

Additionally, the Bangladeshi taka depreciated significantly, losing around 40% of its value—from Tk86 per dollar to Tk117—further exacerbating financial pressures.

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