BD to seek easier loan terms, trade support

Relaxing conditionalities of Chinese loans, trade support, Rohingya repatriation, and renewal of the memorandum of understanding (MoU) on water resources will dominate the bilateral meeting between Bangladesh Foreign Affairs Adviser Md Touhid Hossain and Chinese Foreign Minister Wang Yi on January 21.

The foreign affairs adviser is set to depart for Beijing on January 20 on a three-day visit.

Briefing newsmen about the visit on Wednesday, he said Bangladesh would seek an extension of the loan repayment period to 40 years and a reduction in lending rate to address its debt repayment challenges comfortably.

The country would also seek a waiver of commitment fees against Chinese loans, the adviser said, adding economic issues would mainly be discussed. 

“Some issues are very important. Bangladesh’s trade and economic relations with China are very important,” Touhid said.

“Bangladesh will also explore how China can provide budgetary support and accelerate loan disbursements for various projects,” he said, adding key areas of cooperation, including trade, investment, and economic collaboration, would be reviewed during the visit.

Touhid said discussions would focus on establishing a framework for future bilateral relations, including cooperation in agriculture, education, infrastructure, renewable energy, and sustainable solutions to the Rohingya crisis.

When asked about the Global Development Initiative (GDI), a multilateral development framework proposed by Chinese President Xi Jinping in 2021, the adviser noted that Bangladesh’s engagement with the initiative would be approached positively.

He made it clear that Bangladesh’s relationship with China is not just government-specific.

Responding to a question on the $5 billion budget support proposal initiated during the previous regime, the adviser said discussions are ongoing.

Bilateral trade between Bangladesh and China currently stands at around $25 billion annually, with a trade imbalance heavily favouring the latter.

The visit is expected to address trade restructuring and explore opportunities to boost Chinese investment in Bangladesh.

During his visit, Touhid will deliver speeches at the China Institute of International Studies and the Shanghai Institute for International Studies.

He is also scheduled to meet business representatives in Shanghai to promote Chinese investment in Bangladesh.

Responding to a question, he said Bangladesh would seek Chinese support to expedite Rohingya repatriation.

Both countries would renew the existing MoU on water resources cooperation, the adviser hoped.

Replying to a question, he said bilateral ties with the US would remain intact after the assumption of the US presidency by Donald Trump.

[email protected]