Japan exempts debt worth Tk 46 billion
FE Report | Wednesday, 27 August 2008
Japan has exempted debt worth Tk 46.0 billion aiming to help Bangladesh pursue development activities.
The waiver will be applicable for the loans taken in the period between 1974 and June 01, 1987. The amount includes principal and interest of the loans given for implementation of 25 development projects, an official said Tuesday.
Economic Relations Division (ERD) secretary Aminul Islam Bhuiyan and Japanese ambassador in Dhaka Mr. Masayuki Inoue signed an agreement on exemption of the loan amount.
"Now the government will utilise the exempted fund for execution of different development projects in the country," the official said.
Japan used to exempt Tk9.0 billion worth of loans and interest every year from the financial year (FY) 1979 to FY2004 under a deal titled "Japan Debt Relief Grant Assistance-DRGA".
In addition, the country's largest bilateral donor also continues its debt cancellation programmes under "Japan Debt Cancellation Fund (JDCF)".
The government has allocated about Tk45.00 billion for 80 different development projects and road repair and maintenance works under different ministries from the JDCF during the last five years until FY09.
Japan made commitment to provide US$ 7.335 billion foreign aid and disbursed US$6.767 billion to Bangladesh until FY07.
On June 27 last year, Japan made commitment to provide Tk 19.869 billion ($291 million) worth of concessional loan to Bangladesh government for power generation, water and railway sector development.
The loan will be used to build a 360-megawatt (MW) Haripur power plant and develop Dhaka-Chittagong Railway line and water resources.
The waiver will be applicable for the loans taken in the period between 1974 and June 01, 1987. The amount includes principal and interest of the loans given for implementation of 25 development projects, an official said Tuesday.
Economic Relations Division (ERD) secretary Aminul Islam Bhuiyan and Japanese ambassador in Dhaka Mr. Masayuki Inoue signed an agreement on exemption of the loan amount.
"Now the government will utilise the exempted fund for execution of different development projects in the country," the official said.
Japan used to exempt Tk9.0 billion worth of loans and interest every year from the financial year (FY) 1979 to FY2004 under a deal titled "Japan Debt Relief Grant Assistance-DRGA".
In addition, the country's largest bilateral donor also continues its debt cancellation programmes under "Japan Debt Cancellation Fund (JDCF)".
The government has allocated about Tk45.00 billion for 80 different development projects and road repair and maintenance works under different ministries from the JDCF during the last five years until FY09.
Japan made commitment to provide US$ 7.335 billion foreign aid and disbursed US$6.767 billion to Bangladesh until FY07.
On June 27 last year, Japan made commitment to provide Tk 19.869 billion ($291 million) worth of concessional loan to Bangladesh government for power generation, water and railway sector development.
The loan will be used to build a 360-megawatt (MW) Haripur power plant and develop Dhaka-Chittagong Railway line and water resources.