Long-term financing needed to attract FDI

Speakers at a seminar on Tuesday underscored the need for long-term financing to attract more foreign direct investment (FDI) in the country.

They said this at the seminar on "Foreign Direct Investment Promotion Project (FDIPP), Two Step Loan (TSL) Component" at a city hotel, reports BSS.

Bangladesh Bank (BB) organised the seminar in association of PADECO Co Ltd, Japan and Young Consultants.

Japan International Cooperation Agency (JICA) Bangladesh Office Representative Wataru Osawa attended the seminar as the chief guest while FDIPP Project Director and BB General Manager Md Nazrul Islam presided over the event.

Representatives from Bangladesh Economic Zones Authority (BEZA) and Bangladesh Investment Development Authority (BIDA), members of Japan Bangladesh Chamber of Commerce and Industry (JBCCI) and senior officials of the central bank attended the seminar.

Wataru Osawa said investment in Bangladesh will definitely expand as most foreign investors are discovering business opportunities in Bangladesh.

"However, I also observed that immature financial market is discouraging their eagerness to invest in Bangladesh. One of the biggest challenges for investors is the lack of long-term loan as well as its high interest rate," he added.

He said huge amount of capital investment is required when investors start their business and usually it cannot be repaid in a short time, because naturally it will take time to make profits for a new business.