BPC finds fund for oil import hard to come by
Wednesday, 20 January 2010
Nazmul Ahsan
Bangladesh Petroleum Corporation (BPC) is desperately trying to mobilize funds worth $1.4 billion fund from local or foreign sources to foot its petroleum oil import bill for the year 2010, official sources said.
The BPC has requested the Ministry of Finance (MoF) to make contact with potential lending agencies after three foreign banks operating in Bangladesh, Citibank N.A, Standard Chartered Bank and HSBC, refused to provide it with necessary fund.
The BPC in an official communication to the MoF recently explained the difficulties it has been experiencing to mobilize funds for fuel oil import and sought help in contacting major lending agencies, including the International Islamic Trade Finance Corporation (ITFC) of Islamic Development Bank.
Besides, the state-owned petroleum marketing agency on Tuesday sought $500 million loan from Bangladesh Bank (BB) at concessional rate of interest to help finance about one-third of the total import cost.
The BPC imported 3.7 million tonnes of petroleum oils last year.
"We have suggested the MoF to contact other international or multilateral lending agencies for loan to import petroleum as a number of international banking organization either refused or showed no interest in financing our oil import,' Anwarul Karim, Chairman, BPC, told the FE on Tuesday.
Karim said they are pursuing the BB to make available $500 million at lower rate of interest to help facilitate petroleum import.
Officials in the BPC said the Corporation manages its 50 per cent of total import cost or $1.4 billion through sales of petroleum oil in local markets, while the rest is procured as loan from different sources, including BB, ITFC and foreign banks.
They said the top officials of BPC have recently held talks with Citibank N.A Country head and other top officials for loan. Besides, HSBC and Standard Chartered Bank were approached for the same purpose.
"All the three foreign banks are not willing to provide loan to BPC for importing petroleum," a top official in the BPC said.
Bangladesh Petroleum Corporation (BPC) is desperately trying to mobilize funds worth $1.4 billion fund from local or foreign sources to foot its petroleum oil import bill for the year 2010, official sources said.
The BPC has requested the Ministry of Finance (MoF) to make contact with potential lending agencies after three foreign banks operating in Bangladesh, Citibank N.A, Standard Chartered Bank and HSBC, refused to provide it with necessary fund.
The BPC in an official communication to the MoF recently explained the difficulties it has been experiencing to mobilize funds for fuel oil import and sought help in contacting major lending agencies, including the International Islamic Trade Finance Corporation (ITFC) of Islamic Development Bank.
Besides, the state-owned petroleum marketing agency on Tuesday sought $500 million loan from Bangladesh Bank (BB) at concessional rate of interest to help finance about one-third of the total import cost.
The BPC imported 3.7 million tonnes of petroleum oils last year.
"We have suggested the MoF to contact other international or multilateral lending agencies for loan to import petroleum as a number of international banking organization either refused or showed no interest in financing our oil import,' Anwarul Karim, Chairman, BPC, told the FE on Tuesday.
Karim said they are pursuing the BB to make available $500 million at lower rate of interest to help facilitate petroleum import.
Officials in the BPC said the Corporation manages its 50 per cent of total import cost or $1.4 billion through sales of petroleum oil in local markets, while the rest is procured as loan from different sources, including BB, ITFC and foreign banks.
They said the top officials of BPC have recently held talks with Citibank N.A Country head and other top officials for loan. Besides, HSBC and Standard Chartered Bank were approached for the same purpose.
"All the three foreign banks are not willing to provide loan to BPC for importing petroleum," a top official in the BPC said.