Japan\\\'s debt relief to BD stands at $ 3.5b so far

Japan has so far offered debt relief of around US$3.5 billion out of its total loan of more than $12.0 billion since independence up to June last, official sources at Economic Relations Division (ERD) said Thursday.
In the meantime, Tokyo offered $1.2 billion loan to Bangladesh in the current fiscal (2014-15) as budgetary support under the 35th loan package under an agreement signed on June 17 placing Japan as the single largest bilateral donor to Bangladesh.
The world's third largest economy gives debt relief to Bangladesh on maturity of the loans turning the loan into grants to help the country as a least developed nation.  
The money so derived is used under special agreements to refinance other development projects of their choice, namely in agriculture, health, sanitation and so on.
A senior official at the ERD said total outstanding loan to Japan is now more than $3.5 billion. Bangladesh is regularly repaying the loan.   Meanwhile, discussions between the two governments are in progress to realize further debt cancellation benefit from the Japanese government, the sources said.
The sources said Japan's debt relief to Bangladesh was offered on several occasions.
In the first phase, it offered relief to the tune of more than $2.4 billion (Tk 18,728 crore) for the period up to 2004 under a Debt Relief Assistance Programme (DRAP).
Japan offered debt relief again up to 2008 which covered around $1.1 billion (Tk 9,100 crore) under Japan Debt Cancellation Fund (JDCF).
The sources said the volume of loan from Japan started in small amounts after the independence and then grew faster from early 1980s which put Japan as the highest development partner of Bangladesh
Meanwhile, Japanese Prime Minister Mr Sinzho Abe has announced a big loan package of $6.0 billion for Bangladesh during Prime Minister Sheikh Hasina's visit to Tokyo in May this year.
But the official sources said it is not clear whether this fund will be outside the annual Japanese loan programme to Bangladesh.  The confusion arises partly because of the Japanese government's move to support many new infrastructure projects in the country at a time when Japanese investors are preparing to come here in large numbers.
The present level of annual development assistance will not be enough in that case to cover additional costs.
For example, he said the development of specialized industrial zones for Japanese investors will require large fund.