Bangladesh to seek $20b fresh loans from China
Bangladesh will seek fresh loans amounting to 20 billion US dollar during Bangladesh's Prime Minister Sheikh Hasina's upcoming visit to China, which Beijing hopes would be a 'game changer' in the bilateral relationship.
Out of this $20 billion, 15 billion dollar is designated for infrastructure projects, while the remaining $5 billion, to be provided in yuan, will facilitate payments for Chinese imports, as per officials involved in drafting the proposals.
The foreign ministry conducted an inter-ministerial meeting yesterday to finalize the joint statement to be adopted by both nations during the Prime Minister's visit from July 8 to July 11.
This visit follows just two weeks after Sheikh Hasina's initial state visit to India since beginning her fourth consecutive term as Prime Minister.
The trip to China, Bangladesh's largest trading partner, is seen as a strategic effort by Hasina to maintain favorable relations with two competing regional powers.
Bangladesh will seek Chinese backing for the Southern Integrated Development Initiative (SIDI), centered around the Payra Port in Patuakhali, according to finance ministry officials. SIDI is an integrated development plan for the southern region that includes projects on transport and communication, ICT, power and energy, logistics, and a special economic zone.
This initiative will also include the establishment of an electric vehicle plant, a hi-tech park, and a logistics hub at a strategic location, as stated by a finance ministry official. Japan is currently supporting similar initiatives, including the Moheshkhali-Matarbari Integrated Infrastructure Development Initiative (MIDI) and the BIG-B Initiative (Bay of Bengal Industrial Growth Belt).
Previously, Bangladesh sought a $5 billion loan in yuan to help importers make payments for goods and services from China amidst the country's strained dollar reserves.
During the visit, there may also be discussions on initiating negotiations for a free trade agreement, as Bangladesh aims to boost exports to China and reduce the trade deficit.
Currently, bilateral trade between Bangladesh and China stands at $23 billion, with Bangladesh's imports comprising nearly the entire amount.
.png "Advertisement")
