Govt will ensure optimum utilisation of foreign loans

The interim government will try to ensure optimum utilisation of foreign loans by investing in the priority projects, Finance Advisor Dr Salehuddin Ahmed said on Sunday.
He said there was a lack of the best use of foreign loans during the last government because the priority projects were suppressed.
The adviser made the assurance during separate meetings at his secretariat office with Japan International Cooperation Agency (JICA) Representative in Bangladesh Ichiguchi Tomohide, Asian Development Bank (ADB) Country Director Edimon Ginting, and Acting Australia High Commissioner in Dhaka Ms Nardia Simpson.
"Our priority will be low cost loans and reducing the interest rate of the foreign loans. We have already requested China to extend the grace period and the maturity to 30 years," Dr Ahmed said, citing examples of Japanese low cost loans.
He requested the key development partners to finance Bangladesh to support its reforms and economic development. Bangladesh sought budgetary support from the ADB, JICA and IMF, extended financial support from Australia.
ADB is likely to provide US$ 400 million budgetary support, he added.
"You know that JICA is one of the biggest donors in infrastructure development. They have best practices in disaster management and some other issues too," he said.
"We have requested the ADB to support physical infrastructure development. They also hinted us about their future support to Bangladesh. Along with the reforms, we also have some priority areas like port development and electricity generation."
He further said: "Australia is also our big partner. After the USA and Canada, Australia is a big country. They do not do anything whimsically. We have a scholarship programme and RMG exports to Australia. In addition, we have requested Australia to open up its market for different products of Bangladesh."
The adviser also stressed the need for regional trade and cooperation. "If Australia comes forward with us, we can connect the ASEAN region too. We only look towards America and the EU. But we do not have good cooperation among our close regional friends."
He added that Australia is specialised in energy generation and agriculture production.
Asked about project implementation, Dr Ahmed said that the government would decide on the priority projects and relevant issues after the next ECNEC meeting.
Meanwhile, the chiefs of JICA, UNESCO, UNICEF and UNFPA in Bangladesh met Planning Adviser Dr Wahiduddin Mahmud at his Planning Commission office in the city on the day.
The JICA representative has assured of its support to Bangladesh with extended financial and technical support.
The Planning Adviser requested the UN agencies to increase their support in education reforms and development.
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