Foreign debt pressure on Bangladesh is increasing amid dollar crisis

Foreign debt pressure on Bangladesh is increasing amid dollar crisis

1 minute, 2 seconds Read

The pressure of foreign debt repayment has increased amid the current dollar crisis.

Payment of installments of huge loans taken bilaterally on tough terms from Russia, China and other development partners has started.

As a result, the loan repayment amount is increasing rapidly and will increase further in the coming days.

The amount of foreign debt and interest the government paid a decade ago has now doubled.

According to a recent report of the Finance Ministry, if the government does not take any new loan, Bangladesh will have to repay almost double the current amount after seven years.

Several major projects including Rooppur Nuclear Power Plant, Padma Bridge Rail Link and Matarbari Power Plant are being implemented with bilateral loans. Many more projects are being implemented on foreign loans.

In most cases, the repayment period for these loans is short. As repayment of these loans has begun, additional pressure has been created on the overall credit position. However, the benefits of large projects implemented on these loans are yet to be seen.

The railway track from Dohazari, Chattogram to Cox’s Bazar has been built at a cost of Taka 180 billion. Of the amount, 130 billion taka has been taken as loan from China. Only two trains run on this route.

420 Total Views 1 Views Today
Spread the love

Similar Posts