The country needs more foreign loans for its development (ERD)

TBS Report

September 18, 2022, 4:30 PM

Last modification: September 18, 2022, 4:32 PM

US dollar and euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration

“>

US dollar and euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration

Government stakeholders at a seminar asserted that it is possible to accelerate the country’s development by increasing the amount of foreign loans as the pressure on debt repayment is at a bearable level.

At a seminar organized by the Economic Relations Department (ERD) on Sunday, September 18, Minister of State for Planning, Dr. Shamsul Alam, said that foreign loans should be repaid over a long period with a low rate. of interest.

“The interest on foreign loans is 0.75% to 1.5%. The repayment period for this loan is also very long,” he said, justifying the increase in the debt burden from abroad.

However, Planning Minister MA Mannan, the main guest at the event, advised caution on excessive borrowing, saying external debt plays a vital role in development.

Stressing the need to increase foreign lending until the country is developed, the state minister said Bangladesh’s current external debt is around 13% of GDP and there is scope to double it .

ERD’s Foreign Aid Budget and Accounts (FABA) Wing Chief and Additional Secretary, Md Mostafizur Rahman, presented an article and said that although the IMF gave the option of borrowing up to At 40% of GDP, Bangladesh’s debt ratio is less than 13%.

ERD Secretary Sharifa Khan, Planning Secretary Mamun Al Rashid, IMED Secretary Abu Hena Morshed Zaman and other members and officials of the Planning Commission were present at the seminar on “Management of external debt to ensure good governance” within the framework of the Knowledge-for-Development project funded by the United Nations Development Organization (UNDP).

Comments are closed.