Calculations have shown that if a country takes a $1 billion loan from China, it will have to pay an average of $100 million of principal per year for the next 10 years, excluding the grace period, while the World Bank says This is $33.3 million annually. ,
Talking about this, Zahid Hussain, former chief economist of the World Bank's Dhaka office, told Prothom Alo, “China is trying to increase the use of its currency yuan in global trade. The country is interested in strengthening its position by increasing the credibility of its currency. As part of this effort, China is interested in lending such a large amount of money in yuan to Bangladesh.
Zahid Hussain further said that if the import cost is paid in yuan then the pressure on the dollar will increase to some extent but the effectiveness of the loan depends on the conditions.
He said it would have to be considered whether the borrowed funds would be used to repay import costs or repay the debt of another country.
Zahid Hussain also pointed out that the interest rate and repayment time also have to be considered. He stressed that if everything is in favor of the borrower then the loan can be taken.
*The report, which was originally published in the print and online editions of Prothom Alo, has been rewritten in English by Misbahul Haq and Shamim Reza.