BPC to get SCBs' loan for oil import bills
Saturday, 8 November 2008
FHM Humayan Kabir
State-owned Bangladesh Petroleum Corporation (BPC) is expected to get US$500 as loan from state-owned commercial banks(SCB) to pay oil import bills in the current financial year, officials said Thursday.
"The BPC has sought for US$500 million loan to the energy division this week through an application. We will forward it to the central bank Sunday next for taking necessary steps," energy secretary Mohammad Mohsin told the FE Thursday.
He said: "The loan will be used for import of fuel oil for the current fiscal, payment of outstanding import bills and repayment of loans."
A senior Bangladesh Bank (BB) official said: "The BPC has already communicated with them for requirement of $500 million loan. The central bank might arrange the money through the state-owned commercial banks -- Sonali, Janata or Agrani."
"In last financial year, the BB similarly managed $300 million loan for the state-owned corporation to pay oil import bills," he said.
Bangladesh spent around $3.1 billion on import of 3.5 million tonnes of crude and refined oil in FY08, up by around $1.0 billion.
In the current fiscal, an amount of about $2.5 billion might be required by the BPC to import the necessary fuel oil from abroad, Mr Mohsin said.
"The IDB (Islamic Development Bank) may give $1.2 billion for importing oil. The petroleum corporation needs another about $1.3 billion funds. So, it has planned to borrow $500 million locally," he said.
BPC, country's lone state-owned oil importer, usually make import bill from its earnings of selling oil in the domestic market, borrowing from the Jeddah-based IDB and from the state-owned commercial banks.
Following the oil price fall in international market, the government cut domestic fuel price by 8-12 per cent in October.
Earlier in July 01 last, the government raised diesel and petroleum prices by 34 to 38 per cent in the local market after global prices nearly doubled to around $135 per barrel.
State-owned Bangladesh Petroleum Corporation (BPC) is expected to get US$500 as loan from state-owned commercial banks(SCB) to pay oil import bills in the current financial year, officials said Thursday.
"The BPC has sought for US$500 million loan to the energy division this week through an application. We will forward it to the central bank Sunday next for taking necessary steps," energy secretary Mohammad Mohsin told the FE Thursday.
He said: "The loan will be used for import of fuel oil for the current fiscal, payment of outstanding import bills and repayment of loans."
A senior Bangladesh Bank (BB) official said: "The BPC has already communicated with them for requirement of $500 million loan. The central bank might arrange the money through the state-owned commercial banks -- Sonali, Janata or Agrani."
"In last financial year, the BB similarly managed $300 million loan for the state-owned corporation to pay oil import bills," he said.
Bangladesh spent around $3.1 billion on import of 3.5 million tonnes of crude and refined oil in FY08, up by around $1.0 billion.
In the current fiscal, an amount of about $2.5 billion might be required by the BPC to import the necessary fuel oil from abroad, Mr Mohsin said.
"The IDB (Islamic Development Bank) may give $1.2 billion for importing oil. The petroleum corporation needs another about $1.3 billion funds. So, it has planned to borrow $500 million locally," he said.
BPC, country's lone state-owned oil importer, usually make import bill from its earnings of selling oil in the domestic market, borrowing from the Jeddah-based IDB and from the state-owned commercial banks.
Following the oil price fall in international market, the government cut domestic fuel price by 8-12 per cent in October.
Earlier in July 01 last, the government raised diesel and petroleum prices by 34 to 38 per cent in the local market after global prices nearly doubled to around $135 per barrel.