Staff Reporter :
Foreign loans are needed to accelerate the country’s development as the country’s debt repayment position is not sound.
Though foreign debt plays a vital role in development, it is needed to be cautious to take excessive foreign loans.
Besides, loan agreements are placing frequently without reviewing the terms of the agreements properly though the interest rate on foreign loans is 0.75 per cent-1.5 per cent.
Different stakeholders of the government said this while addressing a seminar on ‘Foreign debt management to ensure good governance’ organized by the Economic Relation Department (ERD) under the Knowledge-for-Development project funded by the United Nations Development Organization (UNDP) in the city’s Sher-e-Bangla Nagar on Sunday.
“We have to be cautious on excessive borrowing in terms of getting foreign loans. No doubt, foreign debt is playing a vital role in country’s development,” Planning Minister MA Mannan, said while speaking as the chief guest in the seminar.
State Minister for Planning Dr Shamsul Alam said foreign loans have to be repaid in a long period with low interest.
Justifying the increased debt load from abroad, the State Minister said that the repayment period of foreign loan is also very long.
Highlighting the need for increased foreign loans until the country is developed, the State Minister said that Bangladesh’s current foreign debt is around 13 per cent of the GDP and there is scope to be double of it.
Addressing the government officials in the seminar as special guest, the Secretary of the Cabinet Division, Khandkar Anwarul Islam said, “The country will not develop if anyone take bribes and lead their life with illegal money.”
Some projects are taken up without conducting proper survey, he said and asked “How do you do it? You can’t do it.”
“The irregularities start with the foreign loan agreement. When the ERD makes a loan agreement, they do not properly review the terms of the agreement. As a result, it becomes a thorn in the neck,” the Cabinet Secretary said.
ERD Foreign Aid Budget and Accounts (FABA) Wing Chief and Additional Secretary Md Mostafizur Rahman presented an article in the seminar and said that the International Monetary Fund (IMF)
has given the opportunity to borrow up to 40 per cent of the GDP, while the debt rate of Bangladesh is less than 13 per cent.
Among others, ERD Secretary Sharifa Khan, Planning Secretary Mamun Al Rashid, IMED Secretary Abu Hena Morshed Zaman and other members and officials of the Planning Commission attended the seminar.
