Bangladesh's stake in the Islamic Development Bank (IsDB) has fallen due to an increase in the bank's special capital, sources said, as it consequently could make loan negotiations for petroleum product imports difficult.
The country's voting rights in the IsDB's governing body have also declined. Bangladesh's shareholding in the development agency has dropped to 0.952 per cent from 1.0008 per cent, according to a central bank document.
The Special Capital Increase (SCI) has taken effect, reducing Bangladesh's holdings.
As an IsDB member, Bangladesh could face difficulties negotiating loans for petroleum product supplies, a senior official of the Ministry of Power, Energy and Mineral Resources said.
Securing loans from the Islamic Trade Finance Corporation (ITFC), especially for petroleum product imports, would be easier if Bangladesh raised its capital subscription in line with the IsDB's SCI.
The data showed that increasing Bangladesh's shareholding and voting power to previous levels would require about $45.55 million in capital subscription.
State-owned Bangladesh Petroleum Corporation (BPC) mainly borrows from the ITFC -- an IsDB member.
Besides, the Bangladesh government also takes loans from the IsDB for various sectors.
Saudi Arabia is the largest shareholder among the bank's 57 member states. The IsDB has operating assets of more than $16 billion and subscribed capital of $70 billion.
Each member has 500 basic votes plus one vote for every share subscribed. According to IsDB rules, each governor can cast votes on behalf of the member they represent.
The IsDB is a multilateral development bank promoting social and economic development in member countries and Muslim communities worldwide.
When contacted, an official of the Economic Relations Division said, "We are working on the capital subscription issue."
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