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  • DEBT Balancing Bangladesh

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    Siam Ahmed
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    The document discusses Bangladesh's foreign debt from China and other countries. It notes that China has invested $26 billion in projects under the Belt and Road Initiative and an additional $14 billion in joint ventures. While China was interested in 64 projects, Bangladesh ultimately only agreed to 9 after analyzing economic viability. The document also provides statistics on Bangladesh's total foreign debt over time, which has increased to $131.14 billion as of 2020-21. However, it argues that Bangladesh is not at high risk of debt distress since its foreign debt ratio is diversified across countries like IDA, ADB, Japan, and China, with China only accounting for 8% of foreign debt.

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    The document discusses Bangladesh's foreign debt from China and other countries. It notes that China has invested $26 billion in projects under the Belt and Road Initiative and an additional $14 billion in joint ventures. While China was interested in 64 projects, Bangladesh ultimately only agreed to 9 after analyzing economic viability. The document also provides statistics on Bangladesh's total foreign debt over time, which has increased to $131.14 billion as of 2020-21. However, it argues that Bangladesh is not at high risk of debt distress since its foreign debt ratio is diversified across countries like IDA, ADB, Japan, and China, with China only accounting for 8% of foreign debt.

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    © All Rights Reserved
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    13 views4 pages

    DEBT Balancing Bangladesh

    Uploaded by

    Siam Ahmed
    The document discusses Bangladesh's foreign debt from China and other countries. It notes that China has invested $26 billion in projects under the Belt and Road Initiative and an additional $14 billion in joint ventures. While China was interested in 64 projects, Bangladesh ultimately only agreed to 9 after analyzing economic viability. The document also provides statistics on Bangladesh's total foreign debt over time, which has increased to $131.14 billion as of 2020-21. However, it argues that Bangladesh is not at high risk of debt distress since its foreign debt ratio is diversified across countries like IDA, ADB, Japan, and China, with China only accounting for 8% of foreign debt.

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    © All Rights Reserved
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    SIAM AHMED

    ASIAN UNIVERSITY OF BANGLADESH

    July 10, 2022


    DEBT Balancing Bangladesh

    Chinese President Xi Jinping visited Bangladesh in 2016. New agreements have been
    signed between the countries. The BRI project is USD 26 billion and the joint venture is
    USD 14 billion. BWGED says China is interested in signing 64 projects in Bangladesh.
    But the Bangladesh government analyzes the importance and economic viability of all
    projects. Then Bangladesh government is interested in 9 projects. Padma Bridge Rail
    Link, Bangabandhu Tunnel and Deser Kanhadi Sewage Plant are among them.

    The Diplomatic 09, November 2021, China has stepped up it’s huge infrastructure
    investments in Bangladesh worth $10 billion.

    After 1971, world Bank, IMF and many organizations they given loan recovery economy
    system and development infrastructure. The foreign debt of Bangladesh FY(1971-72) to
    (2020-21) Bangladesh accepted total $72.9 billion foreign debt. The FY ( 2021- 22) July
    to May Bangladesh received $8.2 billion.
    Public Sector Outstanding External DEBT

    The daily Star may 10,2022, At the end of the lost fiscal year 2020-21 the total
    outstanding debt stood at $131.14 billion, increase by $16.45 billion on average in
    the past three years.

    Therefore, foreign debt and outstanding foreign debt are increasing every year. Why all
    newspapers, online portals and media are saying “Bangladesh economic situation will
    be like Sri Lanka” and Indian media is saying “Bangladesh will not fall into Chinese debt
    trap”? The IMF's recommendation of external debt to GDP is debt at 55% and
    government debt at 70%. At present the public debt of Bangladesh is 16% and foreign
    debt is safe for Bangladesh.
    Bangladesh Foreign Debt

    Bangladesh's foreign debt ratio is IDA 36%, ADB 23%, Japan 18%, China 8%. So that
    balances the good position debt. Chinese debt accounts for 8% of all foreign debt. The
    foreign debt portfolio is so diversified in Bangladesh. Bangladesh has not fallen into
    China's trap. More than USD 1 billion has been disbursed in Bangladesh from fiscal
    year (2016-17) to (2020-21). Bangladesh used local, Japanese, Indian and Chinese
    workers in all projects. It is good balance and strategy for Bangladesh.

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