China agrees to extend loan repayment period for BD

China has in principle agreed to extend the loan-repayment period for Bangladesh.
The Chinese decision was conveyed during the bilateral meeting between Bangladesh Foreign Adviser Md Touhid Hossain and Chinese Foreign Minister Wang Yi held in Beijing on Tuesday, foreign ministry officials said.
Touhid requested China to reduce the interest rate from 2-3 per cent to 1 per cent, waive commitment fee, and extend the loan repayment period from 20 years to 30 years for both the Preferential Buyer's Credit (PBC) and the Government Concessional Loan (GCL).
Praising Bangladesh's good track record of loan repayment, Yi agreed in principle to extend the loan repayment period and assured to look into the request for interest rate reduction. He assured to continue the Duty-Free Quota-Free (DFQF) access of Bangladeshi products to the Chinese market for three years after the least developed country (LDC) graduation.
Bangladesh and China reaffirmed their commitment to the "Comprehensive Strategic Cooperative Partnership" during the bilateral talks held at the Diaoyutai State Guest House in Beijing.
The talks, held in a very cordial atmosphere, covered a wide range of topics, including development cooperation, trade and investment, infrastructure development, sectoral cooperation, and people-to-people exchanges.
Both sides expressed their commitment to deepening collaboration in the areas of mutual interests and leveraging opportunities for shared prosperity.
During the talks, Yi mentioned that the people of Bangladesh have given important responsibility to Professor Muhammad Yunus, who has dedicated himself to maintaining civility and unity in the country, and his government has done many tangible good things for Bangladesh.
The Chinese minister mentioned that China places Bangladesh in a very important position in its neighbourhood diplomacy and praised the existing warm relations between the two nations.
He reaffirmed that China respects the sovereignty and territorial integrity of Bangladesh and reiterated continued Chinese support for stability, reforms, democratic transition, and development initiatives of Bangladesh.
Besides, he mentioned that China wants to see Bangladesh's economic development in pace with its own development.
"China would continue supporting projects conducive to the livelihood of the people of Bangladesh," he stated.
On the other hand, Hossain emphasised his first bilateral visit to China reflects Bangladesh's strong intent to engage with the country in a robust partnership to give the relationship new momentum.
He reiterated Bangladesh's firm commitment to the "One China Principle" and unwavering support for the UNGA Resolution 2758.
Upon Bangladesh's request, Yi conveyed China's decision to especially designate three to four recognised hospitals in Kunming for the treatment of Bangladeshi patients.
He also welcomed Bangladesh's proposal for establishing a specialised tertiary-level Chinese hospital in Dhaka as a gesture of goodwill on the occasion of the 50th anniversary of Bangladesh-China diplomatic relations.
The Chinese foreign minister also gave positive responses to consider Bangladesh's requests for financial, technical, and capacity building cooperation and support in sectors such as education, railway, agriculture, water resource management, livestock, fisheries, shipbreaking, sustainable and renewable energy, and blue economy.
Recognising Bangladesh's strategic position, the two sides emphasised continued cooperation under the Belt and Road Initiative (BRI).
They expressed their willingness to work closely on the proposed Chinese-funded projects, namely Dasherkandi Sewage Treatment Plant, Upgradation and Modernisation of Mongla Port, Establishing Digital Connectivity, and 4G Expansion.
Both leaders discussed the Rohingya crisis and reaffirmed their shared commitment to working on a roadmap to find a durable solution to the issue.
Yi reassured China's continued engagement with Myanmar to address the situation and promote regional stability.
He also requested Bangladesh to consider joining Chinese President Xi's three global initiatives, namely GDI, GSI, and GCI.
In response, Bangladesh conveyed its intention to examine the proposals and remain engaged with China in deliberations on the issues.
The two nations also agreed to collaborate on each other's candidature in multilateral fora, including the United Nations.
The talks concluded with the signing of the "Implementation Plan of the MoU on Exchange of Hydrological Information Sharing of the Yaluzangbu-Jamuna River".
Hossain also had a meeting with the minister of the International Department of Chinese Communist Party.
They discussed the Chinese-funded development projects in Bangladesh. They also talked about the reform initiatives of Bangladesh's interim government.
The Chinese minister reaffirmed China's continued support for the interim government and peaceful transition to democracy through a free, fair, and participatory election.
Hossain also held a meeting with the chairman of the China International Development Cooperation Agency (CIDCA) on Tuesday afternoon.
They had elaborate discussions on the Chinese-funded projects in Bangladesh.
Hossain requested the CIDCA chairman to consider reducing the interest rates of GCL and PBC from 2-3 per cent to 1 per cent and extending the loan repayment period from 20 years to 30 years.
He also requested to waive the commitment fee and management fee of Chinese loans for Bangladesh.
The CIDCA chairman mentioned they had already extended the maturity period and would consider further reductions in interest rates.
Hossain requested the CIDCA chairman to increase the amount of concessional loans and grants, as well as the number of projects.
The CIDCA chairman responded positively and requested Bangladesh to provide a list of priority projects.
Both sides also discussed the financing of projects for metro rail and the Southern Infrastructure Development Initiative (SIDI) in Bangladesh.
The CIDCA chairman noted that China may consider larger projects in Bangladesh in future and some portions of those will be given as grants, adding this would reduce the average loan interest rates.
Hossain is paying an official visit to China at the invitation of the Chinese foreign minister.
Senior officials of the commerce and water resources ministries, as well as the Economic Relations Division, are accompanying the foreign adviser.
This is his first bilateral visit abroad after assuming office.
The visit also coincides with the celebration of the golden jubilee of the diplomatic relations between the two friendly nations.
Hossain arrived in Beijing on Monday on a four-day visit.
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