Dhaka, Sep 9 (V7N): Bangladesh has requested China to extend its loan repayment period to 30 years, Finance Adviser Salehuddin Ahmed announced on Sunday. Speaking to reporters after a meeting with representatives from the Japan International Cooperation Agency (JICA), the Asian Development Bank (ADB), and the Australian High Commissioner in Dhaka, Ahmed highlighted the government's focus on securing low-cost loans with extended repayment terms.
“We have asked China to extend the repayment period to 30 years and also increase the grace period,” said Ahmed, noting that loans from Japan already come with a 30-year repayment period and a 10-year grace period.
The adviser emphasized that the government has been seeking similar long-term arrangements from other development partners, especially China, which currently offers a five-year grace period and a 15-year repayment term. As of June, China's loan stock in Bangladesh amounts to over $55 billion.
Ahmed also expressed optimism about the ADB providing $400 million in budget support within the current fiscal year (FY25). Additionally, Bangladesh has sought $3 billion from the International Monetary Fund (IMF), supplementing the previously allocated $4.7 billion in credit support. The finance adviser is scheduled to discuss this further during the IMF and World Bank annual meetings in Washington.
When asked about the previous government's performance, Ahmed stated, “The Awami League government did not prioritize the maximum welfare of the people. However, we aim to move forward without focusing on past shortcomings.”
Addressing the efficiency of foreign aid utilization, he added, “There were some large-scale projects in the previous regime, similar to trends in India. However, we must now ensure optimal utilization of aid and focus on our priorities.”
Ahmed reported that the government received assurances from key development partners regarding continued cooperation and additional financial support. Discussions also included funding for infrastructure, energy, agriculture, and disaster management projects.
Representatives from JICA, Australia, and the ADB expressed their commitment to strengthening partnerships with Bangladesh.
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