Bangladesh seeks concessional loans for 5-10 years from dev partners post-LDC

Bangladesh has requested its multilateral development partners such as the World Bank and the Asian Development Bank to continue concessional loans in an increased volume for five to 10 years after the country's LDC graduation in 2026. 

At the "1st Development Studies International Conference Dhaka' on Sunday, Bangladesh also proposed to the development partners to increase climate financing in Bangladesh.

In addition, the bi-lateral lenders, including China, have been asked to relax loans' terms and conditions, including lowering interest rates and other fees while enhancing the loan repayment periods.

"In the post-Covid era, Bangladesh is passing through a tough time due to Russia-Ukraine conflicts. The world situation is not the same now. As a result, Bangladesh has to face challenges for the LDC graduation. So, Bangladesh needs development partners' support," said Mirana Mahrukh, additional secretary at the Economic Relations Division.

She was speaking at a session on "Partnership for Sustainable Development" of the two-day dialogue that kicked off in Dhaka from on Sunday. 

Abdoulaye Seck, World Bank country director, Yao Wen, ambassador of China in Bangladesh, Gwyn Lewis, Un resident representative in Bangladesh, Charles Whitley, head of the EU delegation in Bangladesh, were present at the session. 

"The efforts that Bangladesh is doing when it comes to external debt, but it is extremely low, actually, like 16% of GDP. And there are opportunities for the country to reach very quickly to the upper middle income country status," said Abdoulaye Seck, World Bank country director. 

He said Bangladesh is seeking concessional loans when it wants to make further progress, adding that investments are very important for it to enhance trade and logistics. 

Such investments will be sustainable and help Bangladesh grow faster, according to him. 

About climate financing, he said, "This is a very good point and I would totally agree with it.  Climate finance is certainly an area where we should be supporting Bangladesh as much as possible."

Addressing the event as the chief guest, Mashiur Rahman, Prime Minister's economic adviser, said now Bangladesh has to come out of foreign aid dependency and should depend on trade. 

"With the development, the amount of concessional loans are already on the decline in Bangladesh. Now, it should focus on increasing revenues as well as exports. Then, foreign debt will not create any pressure on us," he said. 

Turning to the Rohingya issue, the Head of EU Delegation in Bangladesh Said, "We give priority on repatriations but here key principle is voluntary, safe and dignified return. As we all know, the situation on the Myanmar side is getting worse, not getting better." 

"We have to make sure there's adequate support financially, politically and policy-wise for the government of Bangladesh and the refugees," he added. 

China's Ambassador Yao Wen added that more than 50% of his country's support for Bangladesh is related to Rohingyas' repatriation. 

"Despite our sincere efforts, the internal situation in Myanmar is delaying the return of the Rohingyas. The final and only solution to the Rohingya crisis is their dignified and safe return," he said. 

MA Mannan, former planning minister, presided over the session.